Royse City ISD authorizes parameters to pursue refunding of 2015 bonds amid volatile markets

The Royse City ISD board voted 6–0 to adopt a parameter order authorizing the district to pursue an unlimited‑tax refunding of its outstanding 2015 bonds, delegating pricing authority to the superintendent (or designee) and setting execution parameters the district must meet to proceed.

Byron (S12) outlined the finance team's work and introduced Jeff Robert of Hilltop Securities (S18) to describe market conditions and the refunding rationale. Jeff told trustees that tax‑exempt refunding requires closing within the 90‑day window tied to an August 15, 2025 call date to preserve tax‑exempt status. He described a scenario with roughly $1,500,000 in potential present‑value savings while setting the district's absolute minimum present‑value savings threshold at $1,000,000. The parameter order also limits the maximum principal to $30,000,000 and a maximum true interest cost near 4.5%.

On market volatility and execution timing, Jeff Robert (S18) warned that conditions were unusually unpredictable. "This morning, I think was the first time in my 29 years that he said, I have no idea where the market is right now," the presentation noted, underscoring the district's decision to delegate authority while monitoring ratings and market signals. Board members asked whether the district could execute on short notice; Jeff said rating calls and final steps remained but that the team could move quickly if parameters were met.

The action allows the district to pursue savings and increase issuance capacity for future projects while ensuring no extension of the final maturity beyond the refunded terms.