At a meeting on Oct. 19, the New Braunfels ISD board of trustees unanimously authorized the district to issue the remaining $113 million from its 2024 voter-approved bond and refinance $112.65 million.
Why it matters
The district doesn't anticipate needing the remaining $113 million until August, but market conditions and interest rates are ideal right now, said Chief Business and Support Services Officer Paul McLarty.
The district will also have the flexibility to authorize the bond funds earlier than August if needed, McLarty said.
"This gives us the flexibility as a district to jump into the market whenever the interest rates are best," McLarty said.
The board's decision to refinance the $112.65 million in existing bonds with higher interest rates to potentially lower interest rates will help manage the district's debt and tax rate, representatives from the district said.
Looking back
Voters approved the $313 million bond in May 2024. The district issued the bond in portions over the past two years, according to the agenda documents.
May 2024: Voters approve $313 million bond
August 2024: NBISD issues $125 million for 18 months' worth of construction on bond projects.
February: District issues another $75 million for more bond projects
October: Board authorizes the issuance of the remaining $113 million for future projects
The board's decision allows district staff to issue bonds sooner if necessary to support construction over the next 12 to 18 months, according to an email from a district representative.
