San Felipe-Del Rio CISD board approves refunding bonds to preserve state facility aid

The San Felipe-Del Rio CISD Board of Trustees unanimously approved an order authorizing the issuance of unlimited tax refunding bonds, Series 2026, after hearing a presentation from the district’s financial advisors.

David Gonzalez of PFM, the district’s financial advisor, told trustees the plan is intended not primarily to reduce interest costs but to preserve state facility-assistance funding in light of new state laws effective Sept. 1. "By doing it this way, you preserve the current state assistance levels that comes out of Austin through IFA, EDA, and ASSAHI funds," Gonzalez said. He described a PNC bid at a roughly 4% true interest cost, a pricing date of July 27 and a scheduled closing (delivery) on Aug. 20. Gonzalez and administration said an issuer contribution of $100,000 will be paid at closing from the district’s debt-service fund to meet attorney-general requirements.

Gonzalez presented the refunding structure and the accompanying numbers: a par amount cited in the presentation of $2,295,000, refunded bonds listed at $22,320,000 on the slides, a gross positive cash‑flow savings over six years of $252,975 and a net present value shown as a negative roughly $73,000. Administration emphasized that, while the refunding does not deliver large present-value savings, it is intended to avoid losing approximately $800,000 in state assistance across the next five to six years that could result from a straight defeasance under upcoming statutory changes.

After questions from trustees about the timing and the issuer contribution, the superintendent and the administration recommended approval. A motion to approve the order was made, seconded and carried unanimously.

What’s next: the board’s approval authorizes the administration to proceed with the refunding transaction consistent with the presented pricing and closing schedule; the district plans an August 20 closing if market conditions remain as presented.