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Royse City ISD approves parameter order permitting up to $100 million in bonds amid SB4 uncertainty
Summary
Trustees adopted a parameter order authorizing up to $100,000,000 in bond issuance to finance ongoing construction; staff and bond counsel said the district is targeting roughly $85 million of issuance that would likely receive hold‑harmless funding if the state interpretation is clarified. The motion passed 5-0.
The Royse City ISD board adopted a parameter order authorizing the issuance of up to $100,000,000 of the district—ond authorization and delegated pricing authority to the superintendent and CFO within set parameters. Bond counsel explained that the delegation allows staff to set final pricing if market and valuation conditions meet the prescribed thresholds.
During the presentation bond counsel walked trustees through interest-rate assumptions and structure, saying the district is considering a 33-year structure to maximize hold-harmless funding. Byron Bryant warned that recent state legislation (SB 4) increasing the homestead exemption could reduce the district—ond-sales capacity unless hold‑harmless treatment is extended to authorized but unsold bonds. "We're gonna see a lot more portables, if we don't get this hold harmless," Bryant said, urging continued legislative engagement. The board voted 5-0 to adopt the parameter order.
Staff indicated they expect to present final sale amounts and pricing in late July or early August and that the district hopes to capture available hold-harmless funds when possible. Bond counsel estimated the district could reasonably target roughly $85,000,000 of issuance under current assumptions and projected hold-harmless funding in the range presented to trustees.
