Tioga ISD set to sell bonds

By Abigail Allen

Editor & Publisher

       Tioga ISD received good news from Financial Adviser David Webb on July 18 regarding the bond sale.

       Webb, who is with Stifel Institutional, shared that the district will be refunding $8.7 million in the first round of bond debt sales at a total interest rate of 4.94%.

       "In every possible way, this really worked out so much better than I honestly thought," Webb said, joining the meeting by speakerphone.

       The sale refunds bonds that had maturities of 2024, 2029 and 2036, "which will give you some more interest rate relief in the general fund for the next few years as well," Webb said.

       Having the insurance provided by Build America Mutual, he added, "because it put you out there in a market that was comparable to all the other school deals that were out in the market."

       Going to market in July helps attract bond purchasers who want to reinvest the money they received in June, as well.

       "You were oversubscribed," he said. "… We had about $70 million in orders for $8.7 million in bonds, which is just incredible."

       Webb also spoke with appreciation about Brad Angst of Stifel and BOK Financial's roles in the sale, which is set to close on Aug. 8.

       "The funds from the sale will cover the principal payment due and all of the interest on all three of the bonds on [Aug. 15]," Webb said.

       Ballinger and the board members expressed their gratitude to Webb and the entire bond team and the community.

       "When we're expecting to get 10% and we're getting 5% is huge," trustee Brandon Miller said. "Thanks to our taxpayers.

Yes, it is going to cost slightly more because … we did stretch them out, but … the cost of doing this is much less than what we thought it was going to be, which is good for the district in the long run as well."

       Prior to the board meeting, the trustees held a meeting of the Public Facility Corporation, the board for which is the same as the school board.

       During that meeting, the officials approved a resolution authorizing the early redemption of the bonds for the Tioga High School building, which had to happen before the board could move forward with the bond sale.

       Also during the meeting, the board approved a student accident insurance policy that means the district covers catastrophic accidents—such as loss of limb or life—with the option for parents to add more extensive coverage.

       Ballinger also updated the board and public about some changes in the Grayson College testing requirements that have caused shifts in student schedules for the pending school year.

       "Essentially it affects our 10th graders the most," he said. "… They're 15 years old. They haven't had certain classes that TSI would be testing on, so the college all along has said, Tioga, you're an early college. You have been for 10 years. We're going to grant you some leniency there."

       That's in regard to the TSI testing instead of using their scores on the end-of-course exams, but that leniency has now ended.

       The students will take courses that do not require that at the start of the year and then will have them tested within a month.

       "This is why our degree plan that's worked for 10 years is now all of a sudden changing," Ballinger said.

       Ballinger also tested the waters on whether the board would be open to leasing TISD facilities to The Bridge Church, to which the trustees seemed receptive.

       Trustee Trina Colteryahn was not present at the meeting.

       Also at the meeting, the board and public heard from Tiffany Drake, a Democrat running for the Texas House of Representatives District 62.