June 2007

Trustees approved the sale of $250 million in new money bonds as well as the refinancing of $25.5 million of adjustable rate bonds (originally set in 2002), at a true interest rate of 4.78 percent.

March 2006

Trustees approved the order authorizing the issuance of Cypress-Fairbanks Independent School District Unlimited Tax Schoolhouse Bonds, Series 2006, totaling $200 million, and the refunding of approximately $74 million in outstanding bonds. The sale of $200 million in bonds marks the second sale from the successful 2004 bond referendum. The district increased the amount of this bond sale by moving up the construction of the middle and high school that are needed due to the enrollment growth experienced by the district. There will be no change in the tax rate promised the voters due to this increase in the bond sale. The refunding of the outstanding bonds will save the district approximately $3.3 million in interest payments.

Trustees approved an order authorizing the issuance of $131.1 million in Unlimited Tax Schoolhouse Bonds, Series 2005. The total represents the remaining $81.1 million in bonds from the 2001 Bond Election and $50 million from the 2004 Bond Election. This bond sale was originally scheduled for April but the district wanted to wait for the Permanent School Fund (PSF) guarantee from the state which raised the bond rating to AAA and saved the district $400,000-$500,000 in insurance costs to raise that rating.

The District held two separate bond sales in January 2005 that resulted in the refunding of $150,859,514 in fixed rate bonds with unlimited tax adjustable rate bonds which is projected to save the district more than $20.1 million over the next 10-15 years.

The Board adopted a resolution authorizing the execution of a Standby Bond Purchase Agreement with BNP Paribas related to $76.5 million in Unlimited Tax Adjustable Rate Schoolhouse Bonds (Series 2002B) that were issued in December 2002 and approving termination of the prior agreement with Toronto Dominion, which is no longer providing financial protection services. Because fees for these services have decreased since the adjustable rate bonds were issued, the new agreement is expected to save the district approximately $250,000 over the next five years.

Trustees approved an order authorizing the issuance of $100 million of CFISD Unlimited Tax Schoolhouse Bonds, Series 2004, to Merrill Lynch at an interest rate of 5.164 percent. The district anticipates that proceeds from the sale of this bond series will be deposited into the district’s account in July. This sale represents the fifth installment of bonds originating from the December 2001 referendum. To date, $389,445,000 of the $470,545,500 in bonds approved by voters has been issued.

Trustees approved the schedule of events for the sale of $100 million in Schoolhouse Bonds, Series 2004. Frank Ildebrando of RBC Dain Rauscher reported that, even with the sale of the bonds, there would not be an increase in the Interest and Sinking (I&S) portion of the tax rate. In fact, Ildebrando indicated there may even be a chance that the district would be able to decrease the I&S tax rate. The sale of the bonds will take place June 14 and bonds should be delivered by July 14.

A special-called Board meeting was set for June 25 to sell $100 million in Unlimited School House Bonds, Series 2003 and refund $10 million in bonds sold in 1991 and 1993. With the sale and refunding of the bonds, the district will have successfully financed the $470.5 million approved by voters in December 2001 with no increase to the Interest and Sinking (I&S) tax rate. The district had originally estimated a possible tax impact of two cents over the life of the bonds but was able to avoid any increase due to wise financial planning and taking advantage of low interest rates. Through refunding of old bond debt, the district may be able to actually reduce the I&S tax rate within the next two years.

Trustees approved the schedule of events for refunding $9.2 million in series 1991A and $1 million in 1993A bonds. This will result in a savings of $1,181,614 for the district. A special called board meeting is set for June 25 at 6 p.m. in the Board Room to complete the transaction.

During a special called meeting December 12, trustees approved the sale of $76.5 million of Cypress-Fairbanks Independent School District Unlimited Tax Adjustable Rate Schoolhouse Bonds, Series 2002B, with a net interest rate of 2.76%.

Benefits of the variable rate included lower annual interest on debt that would allow the district to sell bonds sooner, draw a larger number of competitive bids, maintain and possibly decrease the district’s Interest and Sinking (I&S) tax rate, and the ability to refinance old debt at anytime in order to capitalize on future low fixed interest rates.

At a special meeting held November 22, the Board adopted an order authorizing the issuance of $92,939,049 of Unlimited Tax Refunding and Schoolhouse Bonds, Series 2002A. By taking advantage of the lower interest rates and the refinancing of bonds, the district will realize a $7.25 million savings in debt service over the next 17 years.

Trustees approved the scheduling of the second series of bonds from the 2001 bond referendum totaling $100 million to be sold in November, as well as the refunding of $60 million in bonds that were issued 10-15 years ago. The refunding of these bonds will save the district approximately $4 million in interest payments. The $100 million of bonds from 2001 will be sold at a combination of fixed and adjustable rates. According to Frank Ildebrando of RBC Dain Rausher, benefits of the variable rate included lower annual interest on debt that would allow the district to sell bonds sooner. The district would also draw a larger number of competitive bids, maintain and possibly decrease the district’s interest and sinking (I&S) tax rate, and have the ability to refinance old debt at anytime in order to capitalize on future low fixed interest rates.

Trustees approved an order authorizing the issuance of $80 million as the first series of bonds to be sold from those approved by voters in the December 2001 bond election. After receiving several competitive bids, the bonds were sold to RBK Dain Rausher at an interest rate of 5.2261 percent, which is below the originally bid estimate of 5.5 percent.