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Board authorizes district to pursue refunding of 2015 bonds if market yields at least 5% NPV savings
Summary
Floresville ISD authorized administration to pursue a parameterized refunding of $8.34 million of 2015 bonds if a 5% net present value saving can be achieved; consultants said current markets make immediate refunding unlikely but the authorization allows a six-month window to act if conditions improve.
The board authorized administration to pursue a parameterized sale to refund $8,340,000 of the district’s 2015 bonds if net present value savings of at least 5% can be achieved.
District finance lead Angel Engle presented the request and introduced Samco municipal-advisory representatives. Samco’s representative explained that the 2015 bonds become callable on Feb. 1, 2025, and that while the district had previously refinanced other series, current municipal-market rates have moved higher and immediate savings are not likely. Samco recommended waiting for favorable market movement but supported obtaining board authorization for a six-month parameter sale so the district can act promptly if a 5% NPV savings threshold is met.
Administration recommended the superintendent and director of finance be authorized to approve the sale within the stated parameters; the board voted to authorize the measure 7–0 (motion by Greg Neets; seconded by Marshall Fleer). The presenters estimated potential lifetime interest savings in the neighborhood of $550,000 if market conditions permit refinancing that meets the board’s threshold.
