Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Bond Finance topic
No spam. Unsubscribe anytime.
Gatesville ISD board adopts reimbursement resolution; bond advisor outlines plan to sell $26 million
Summary
Trustees passed a reimbursement resolution allowing the district to spend from fund balance now and reimburse from bond-sale proceeds later; the district’s financial advisor outlined plans to issue roughly $20 million this summer and the remainder the following year.
GATESVILLE — The Gatesville ISD board adopted a reimbursement resolution enabling the district to begin maintenance work now and later reimburse those expenses from bond proceeds when the district sells bonds.
Staff introduced standard verbiage prepared by legal counsel and said the resolution allows the district to spend now and to treat the expenses as reimbursable when bond-sale proceeds are received. "So I move to approve the district's reimbursement resolution," a board member said during the meeting; the motion was seconded and approved by voice vote.
After recessing to executive session, the board heard a plan-of-finance briefing from a financial adviser. The adviser summarized the bond-election parameters approved by voters: a $26 million authorization with the board’s intention to keep the INS tax rate at or near 20 cents. The adviser said preliminary taxable values were a bit lower than earlier projections but that current interest-rate conditions were more favorable than assumed in the original plan.
Key points from the adviser’s briefing:
• The plan anticipates issuing about $20 million this summer (a committed interest rate will be presented at the August meeting) and selling the remainder next summer after updated certified values; the adviser said the district’s bonds benefit from a Permanent School Fund guarantee and a strong underlying credit rating.
• The reimbursement resolution adopted by trustees tonight allows the district to begin projects and later reimburse fund-balance spending from bond proceeds once the sale and closing occur.
• Staff will return to the board at its August meeting with a committed interest rate and final cash flows for the amount sold this summer; construction-fund deposit for an August sale would be expected around Sept. 15.
The adviser told trustees the timetable and cash-flow figures are preliminary; trustees were told the attorney general’s office must review bond-sale documentation prior to closing.
