Aubrey ISD approved another sale from the 2025 bond series, piggybacking off recent legislation to take a more aggressive approach to debt sales.
BOK Financial Managing Directors Alison Long and Josh McLaughlin returned during the June 18 meeting to present a $67.3 million sale from the districts remaining 2022 bond package, described as an aggressive step, facilitated by new legislation.
“A few things have changed since we came out here in May,” Long said. “At that time the legislature was still in session. Some bills were out there, and we didn’t quite know how they were going to wrap up. Something that wasn’t finalized at the time was the hold harmless funding that comes with the increased homestead exemption.”
The hold harmless funding will see the state reimburse the district for monies it might have lost during a bond sale thanks to increased homestead exemptions.
“That was something we weren’t expecting when we were here a month ago,” Long said. “For this sale, that equates to about $3.42 million over the life of the bond, not an insignificant amount. We’re going with the aggressive approach because why not receive additional state funding if they’re going to offer it to us.” Superintendent Dr. Shannon Saylor asked if the approach was still an aggressive one given the additional state funding.
The district does have a very healthy fund balance, some of which we are planning to use with this financing program,” Long said. “Should values not come to fruition, we’re only growing them for three years so should we have a shortfall here. You have plenty of I&S fund balance to make up that shortfall.”
The plan at present, before certified values and forecasting a conservative growth rate over the next three years, assumes the use of $2.4 million of the districts I&S fund balance, though that amount is subject to be less if any values such as the hold harmless allotment, values or revenue come in higher than BOK is projecting.
Board member Jody Gonzalez led discussion from the dais, asking several questions, which, based on his affirmative vote alongside the rest of the board, Long and McLaughlin answered to his satisfaction.
The package also accounts for the present volatile market, allowing for a hold on the sale until Jan. 1 of 2026, though McLaughlin explained the goal is to sell by Aug. 27 to secure the hold harmless funds.
This portion of the bond is slated to pay for Elementary No. 5, renovations to the admin building and a transportation hub with leftover funds going toward the planning of Elementary No. 6.
“The reason we like this plan is because, even though it’s at the upper end of what we showed you for bond capacity, it funds all your projects except Elementary No. 6,” McLaughlin said. “We may not have to come back next year to sell more bonds. We may be able to come back in two years.”
Officer Scott Otto, new to the Aubrey ISD team, receives a warm welcome from the board during its meeting on June 18.
Basil Gist/ The Post-Signal
