Cleburne ISD Superintendent, Kyle Heath, announced today the results of a successful bond sale for the recently passed $130,558,461 school bond on May 7, 2016. The proceeds from the bond sale are to fund construction of a new, comprehensive high school facility, and renovate the existing high school into a Career Technical educational facility and renovate the Fine Arts and Athletics facilities. Other projects included in the bond are renovations to the Cooke and Coleman elementary campuses and campus technology purchases.
Initial estimates provided to the board of trustees in February resulted in total projected principal and interest over the entire term of the bond of $224.9 million based on anticipated market conditions; the actual results of the bond sale that occurred on June 28 will result in $198.1 million, lower than initial estimates by approximately $26.8 million, or approximately 12% less. "We are absolutely thrilled with the results of the bond sale. The interest rate used in the initial estimate in February was 4.25%; the actual rate from the bond sale was 3.2%, resulting in substantial savings over the 25 year term of bond repayment".
Jeff Robert with Hilltop Securities, financial advisor to the district, stated in an email to the district: "I was extremely pleased with the results (All-Inclusive Cost of 3.2041%) and think the underwriters did a very good job for CISD. As I also mentioned, we structured this to allow for flexibility in future years. The bonds maturing from 2022 thru 2026 are callable on 8/15/21; fiscal ‘22 is when we project the I&S rate to fall by $0.06. The bonds maturing from 2027 thru 2041 are callable on 2/15/26 (standard 10 year call)."
Cleburne ISD is currently in the planning and design phase of the projects, and will continue to provide the tax paying public with information regarding the status of the 2016 bond as changes occur. For more information, please visit the Cleburne ISD website, and view the link "Bond 2016".