New schools and renovations to cost taxpayers less
Highland Park ISD sold $225 million in bonds today at an interest cost much lower than initially projected. The District was able to take advantage of historically low interest rates and a Aaa rating backed by the Permanent School Fund in order to sell bonds at 2.95%, an interest rate that is significantly lower than was expected prior to the 2015 bond election this past fall. Initial projections were made at 4.50%. Bank of America Merrill Lynch had the lowest bid among seven financial firms that submitted offers.
As a result, taxes are projected to increase by approximately $910 per year (based on a home with a market value of $1 million) and could decrease further based on the results of the remaining bond sale that are part of the 2015 bond program. Initial tax increase projections ranged from $900-$1,384 when the election was held.
The bonds will be used to:
build the first new elementary school in HPISD since 1949
replace Bradfield, Hyer and University Park with new facilities and
renovate and expand portions of Armstrong Elementary School, McCulloch Intermediate/Highland Park Middle School and Highland Park High School
"We are thrilled that we are able to take advantage of a bond market that is experiencing 50-year lows," said Kelly Walker, HPISD Finance Officer. "The board of trustees and the district's finance committee have closely monitored market conditions to make sure that this bond sale eases the burden as much as possible for local taxpayers."
"Highland Park ISD garnered significant interest in the bond market as evidenced by the number of bidders involved in the sale," said Matt Boles, HPISD's financial advisor with RBC Capital Markets. "The Highland Park ISD name and its strong underlying credit rating were well-received and the district's timing was superb."
Plans for selling the remaining voter authorization of $136.385 million are pending, but likely will be completed in two bond sales sometime during 2018 and 2019.
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