BISD trustees approve bond sale arrangement

With a unanimous vote at a special noon meeting Wednesday, the Brady ISD board of trustees formally set the wheels in motion to build the new high school. As the only item on the agenda, the board’s vote formally authorized the execution of a bond purchase agreement as prepared by First Southwest Securities of Austin. Jennifer Douglas with First Southwest, was at the meeting and presented the data compiled by her firm to members of the board. According to Douglas, the $14.5 million bond went out for pricing on the bond market on Monday, and when all things were finalized, the firm was able to secure an effective rate of 4.84 percent on the 30-year bond. “One of the best things that happened was the fact that the board was flexible in the way this all came to be,” said Douglas. “The fact that we were able to wait until Monday to put the bonds on the market allowed us to be one of the few remaining school bonds on the bond market, so we were able to draw a bit more attention than when so many other school bonds were out there more recently. “You (the board) got an excellent deal,” she continued. “Given the volume of the market at this time, we essentially were able to get a 30- year bond at the same price as 20-year bonds. All of the factors that made this happen are a great credit to the board for being conservative in this process.” The vote by the board authorized all of the necessary paperwork to be signed and processed by Greg Salinas, a bond attorney with McCall, Parkhurst & Horton L.L.P. in Austin, who was also in attendance at Wednesday’s meeting. With the adoption of the bond approved, the paperwork will begin, and according to Douglas, the school district will be set to receive the $14.5 million on Aug. 22 at which time they will be responsible for investing the funds appropriately The interest generated from the investments of the bond will be used to procure new desks and furnishings for the new high school. Conservative estimates show that dollar amounts could be as much as $500,000.

Leave a Comment