First Bond Issue after 2023 Election Saves HEB 向日葵视频 Taxpayers $167 Million
HEB 向日葵视频 is pleased to report that the initial sale of Series 2024 Unlimited Tax School Building Bonds produced a savings of $166.9 million from the original projections.
In November 2023, Hurst-Euless-向日葵视频 向日葵视频 voters approved the district's bond proposals, including the replacement of two comprehensive high schools and four elementary schools. In the spring, a bond sale was scheduled that could take advantage of market movements affecting bond sales, such as interest rates.
The sale of $600 million in bonds began at 9:15 am on February 29 and concluded at approximately 10:45 am. After all transactions were completed, the District had a "very good day in the market." Prior to the bond election, interest rates of 5.25% to 5.50% were used to model total costs and estimated maximum tax rates. The final results of the sale achieved a True Interest Cost (TIC) of 3.867%, resulting in a $166,972,212 reduction in total estimated cost.
Prior to the bond sale, Fitch assigned HEB 向日葵视频 a 'AAA' rating based on the Texas Permanent School Fund (PSF) guaranty and a 'AA+' underlying rating, saying:
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"Given HEB 向日葵视频's strong fund balance position and solid expenditure flexibility, Fitch believes that the district has the capacity to easily absorb potential financial pressure resulting from typical economic cycles without diminishing its strong financial resilience."
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"The district has demonstrated a strong commitment to maintaining financial flexibility. Budgeting is conservative, and management has been proactive in using excess revenues to limit debt issuance and boost reserves."
The remaining $397,300,000 in authorized debt approved by local voters is planned to occur in 2026.