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Forney ISD board approves parameter order to pursue up to $89 million refunding and up to $30 million in new bonds
Summary
The Forney ISD board adopted a bond parameter order allowing staff to pursue refinancing up to $89 million of callable bonds if it achieves at least 3% net present value savings, and to issue up to $30 million of new-money bonds for facility improvements provided true interest cost does not exceed 5%.
John Chase presented the board with a bond parameter order that would allow the district to refinance up to $89 million of callable bonds (covering series 2013, 2016, 2017, 2018 and 2019) conditioned on achieving net present value savings of at least 3 percent. The order also includes authorization to issue up to $30 million in new-money bonds to fund facility projects, including converting the existing maintenance shop into a police headquarters and other renovations.
Chase described condition thresholds: the refunding would proceed only if net present value savings meet or exceed 3 percent, and issuance of new-money bonds would be limited to transactions with a true interest cost not to exceed 5 percent. Administration recommended approval and noted the parameter order provides the district one year to monitor market conditions and execute sales if desirable.
A board member moved to adopt the order; the motion was seconded and President Greg Ferris called for a voice vote. Ferris reported no opposition and the board adopted the parameter order as presented. Officials said specific project funding and sale timing would be brought back to the board prior to any bond issuance.
The action authorizes district officers (superintendent, board president, vice president or board secretary and designated staff) to execute sale documents should the district choose to proceed under the order's parameters. The district did not adopt a specific sale at the meeting; the vote authorized the parameters only. The administration said it will return with project-level plans before any bond sale.
