San Felipe‑Del Rio CISD approves Series 2026 refunding bonds to preserve state aid

The San Felipe‑Del Rio CISD Board of Trustees on July 27 approved an order authorizing the issuance of unlimited tax refunding bonds, series 2026, and related documents to refinance portions of the district’s outstanding debt. Board members approved the recommendation after a presentation by the district’s financial advisor and bond counsel.

David Gonzalez of PFM, the district's financial advisor, told trustees the action is aimed at preserving state assistance payments threatened by new state laws taking effect Sept. 1. "By doing it this route and issuing refunding bonds as opposed to doing it the other way, you would lose over $800,000 over the next 5 or 6 years," Gonzalez said, explaining the mechanics and tradeoffs of the proposed refunding. The district received a fixed bid from PNC at 4% to deliver the refunding bonds and presented a gross cash savings figure of about $252,975 across covered maturities, with a net present value figure calculated under a different discounting method.

Gilbert Sanchez, introducing the item on behalf of administration, said the board's action aims to maintain the district's interest-and-sinking (I&S) tax rate in anticipation of a May 2027 bond election. Board members asked clarifying questions about the $100,000 issuer contribution required at closing; Gonzalez confirmed that amount will be paid from the district’s debt service fund at closing, scheduled for Aug. 20.

A motion to approve the order authorizing issuance and related agreements was made, seconded and carried unanimously. The board did not amend the recommendation; trustees approved the financing structure as presented.