Ysleta ISD trustees approve up to $32 million in tax anticipation notes after lender change

The Ysleta Independent School District Board of Trustees on the evening call approved a resolution authorizing issuance and sale of tax and revenue anticipation notes, series 2026b, in an aggregate principal amount not to exceed $32,000,000. Trustee Woodruff moved the resolution and Trustee Ochoa seconded; the motion passed 6-0 with no opposition.

Board members and staff told the board the original lender that had been named in the documents backed out after reviewing press and comments, and the district secured a new lender to provide the $32,000,000 portion of the previously authorized financing. "They were respectfully going to step away from the $32,000,000 loan," a staff member said, explaining the withdrawal of the original bank. Trustee Hernandez asked that the change and explanation be placed on the record: "I think that's an important part for me to get on the record."

District finance staff described the mechanics and cost: the board had previously authorized $63,200,000 in loans from two lenders; this action covers the $32,000,000 portion. Ms. Camborne told the board the prior lender had quoted a 3.6% rate while the new lender’s true interest cost is 4.3%, and she said the district had budgeted "2.1" for total interest cost and expects to remain roughly $200,000 under that amount. In response to Trustee Hernandez’s question about the dollar cost, Ms. Camborne stated the interest on this loan is $942,222.

The board voted to approve the resolution after the public explanation and staff responses. The resolution as moved authorized the issuance and sale of the notes, provided the terms and conditions of such notes, and amended a prior resolution related to the notes. The board recorded the vote as six in favor and none opposed.