Office of the Superintendent of Schools
Office of Finance and Operations
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Consideration And Approval Of An Order Expressing Intent To Defease Certain Of The District’s Outstanding Bonds
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The Houston Independent School District (HISD) has previously issued its $45,675,000 Variable Rate Limited Tax Schoolhouse Bonds, Series 2013B; $160,980,000 Limited Tax Refunding Bonds, Series 2014B; $520,065,000 Limited Tax Schoolhouse and Refunding Bonds, Series 2016A; $480,205,000 Limited Tax Schoolhouse and Refunding Bonds, Series 2017; and $77,870,000 Limited Tax Schoolhouse Bonds, Series 2018 (collectively, the outstanding bonds).
The administration recommends that up to $110,000,000 in principal amount of these outstanding bonds be defeased (i.e., paid off early) no later than the district’s fiscal year ending June 30, 2025. Defeasance of these bonds will lower the district’s indebtedness in its portfolio and/or create capacity for future bond issues. Approval of the attached order provides for the HISD superintendent and chief financial officer to determine the aggregate principal amount of the bonds to be defeased and the timing of such defeasance.
The order and the certificate for order approving the defeasance of up to $110,000,000 in principal amount of the outstanding bonds and related provisions relating thereto are attached.
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COST/FUNDING SOURCE(S): |
All interest costs and debt-servicing costs are paid from the Debt Service Fund. |
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STAFFING IMPLICATIONS: |
None |
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THIS ITEM DOES NOT ESTABLISH, MODIFY, OR DELETE BOARD POLICY.
recommendation
RECOMMENDED: That the School Board approves the cash defeasance, at the discretion of the superintendent and the chief financial officer, of up to $110,000,000 in principal amount of all or part of the outstanding bonds listed above, effective March 22, 2024.