Office of the Superintendent of Schools
Office of Finance and Operations
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Consideration And Approval Of A Resolution Authorizing The Issuance, Sale, And Delivery Of Houston Independent School District Maintenance Tax Notes As Term Rate Notes Or Fixed Rate Notes, In One Or More Series; Authorizing An Authorized Representative To Approve The Terms Thereof; And Containing Other Matters Related Thereto
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The firm of Jackson Walker LLP is serving as bond counsel, and the district’s financial advisor for the proposed note transaction is TRB Capital Markets, LLC (dba Estrada Hinojosa).
The rates at which the notes are sold depend on various factors, including other public fund issues in the market on a given day, global economic issues (including fluctuations in credit markets), and yield performance. To ensure the notes are sold on a day advantageous to the district’s economic model, it may be necessary to sell the notes on a day and at a time when the School Board is not scheduled to meet. The administration is asking for approval to sell the notes subject to the parameters set forth in the resolution being authorized tonight. This approval would authorize the superintendent, chief financial officer, and the controller to sell the notes subject to such parameters, including selling notes in an aggregate par amount not to exceed $120,000,000.
Meetings will be scheduled with the rating agencies Moody’s Ratings and S&P Global Ratings. The district’s financial advisor anticipates that the notes will be assigned a rating in the top two categories (Aaa or Aa with Moody’s, AAA or AA with S&P Global). The notes are not eligible for the Permanent School Fund guarantee.
The district and its legal and financial advisors will continue to monitor the legal issues surrounding the district’s issuance of the notes. This agenda item allows the administration to move forward with all actions needed to carry out the sale of the Maintenance Tax Notes.
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COST/FUNDING SOURCE(S): |
Note issuance costs are a one-time expense and will be paid from the proceeds of the sale of the notes. |
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STAFFING IMPLICATIONS: |
None |
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THIS ITEM DOES NOT ESTABLISH, MODIFY, OR DELETE BOARD POLICY.
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RECOMMENDED: That the School Board approves the resolution authorizing the issuance of Houston Independent School District Maintenance Tax Notes as Term Rate or Fixed Rate Notes, in one or more series; setting certain parameters for the notes; authorizing an Authorized Representative to approve the terms thereof; and containing other matters related thereto, effective May 9, 2025.