MISD Bond Advisory Committee-Meeting #3 Recap

The Bond Advisory Committee met for the third time to hear a report on the status of the 2023 MISD School Bond.

 

The committee was reminded of their roles and responsibilities and heard reports on construction and project timelines; cost of projects and finance reports; and communication and marketing efforts.

OPERATIONS

Procurement procedures were presented about processes school districts must follow related to the procurement of professional services and construction processes. 

 

Updates were given on the bond packages, and the district reported that of the 1.4 billion bond, $1.1 billion has already been assigned to bond projects. 

 

The new elementary school is on schedule to open in the Fall of 2025 with the groundbreaking scheduled for June 6th of this year. Since this school is a prototype of the current Fasken and Yarbrough elementaries, district leaders and architects have worked closely with current tenants of the campuses, including principals, nurses, and special education departments, to make adjustments to the design. The budget for the new elementary school is $53,300,000, and the district is pleased to report that the construction bid came in approximately $8,500,000 under budget. 

 

The committee was presented schematic design views of the high schools, and an overview was given of the layout including academic space placement, traffic flow, parking spaces, fine arts placements, and athletic fields. The designs shown are preliminary and subject to change throughout the design process. 

 

The elementary school “Group A” package was discussed and includes campuses currently without security vestibules. Construction on these projects is expected to begin in the spring of 2025.

 

Package 4, Midland Freshman and Goddard Junior High, make up the first middle school package. These campuses have the same floor plans and will be converted to middle schools when grade reconfiguration takes place in 2028. 

 

Alamo Junior High School makes up the Middle School Group B package. Elements of this project include new classrooms, a secured vestibule, a new library, dining expansion and kitchen upgrades, and a new sprinkler system. Construction is expected to begin in the Summer of 2025.

 

Package 6 includes access control updates, security cameras, and emergency communication enhancements to 23 elementary schools. The community can expect to see construction begin this summer.

 

Site Improvements to Midland Freshman High School encompasses Package 7. Construction on this project is expected to begin this summer.

 

The remaining bond packages associated with the 2023 MISD school bond are continuing to be developed.

FINANCE

BOND SALE

The first bond sale related to the voter-approved 2023 bond was discussed to provide insight into the successful pricing.

 

The district's bond pricing ranked among the top three deals in the negotiated municipal bond market on March 5th for a total issuance amount of $900 million. There was much interest from investors, which led to a lower-than-planned interest rate.

 

During the bond planning process in 2023, the district assumed an interest rate on bond sales to be between 5.25% - 5.50%. The district is pleased to report that due to the high interest from investors, the true interest rate came in significantly lower at 4.09%, resulting in approximately $310 million in interest savings when compared to the planning amount.

 

Historical debt savings from refunding and defeasing outstanding debt dating back to Series 2012 were presented along with a future defeasance scheduled for August of this year. The defeasance will pay off a large majority of the existing principal amount for Series 2015-2020.

FINANCIAL TRANSPARENCY DASHBOARD & WEBPAGE

A dedicated page to MISD Bond 2023 financials has been added to midlandbond2023.com. A pillar of the page includes the financial dashboard, and has been added to provide the community with project spending progress.

COMMUNICATIONS

WEBSITE

The midlandbond2023.com website continues to be used to inform the community of project updates. The website has received major updates in recent weeks including the dedicated financial page, campus profile updates, and an In the News section.

All students will graduate ready for college, career, or military.