Overview of District’s Current Debt Position and Preliminary Bond Capacity Analysis Thursday, February 21, 2019 Securities, insurance and advisory services offered through BOK Financial Securities, Inc., member FINRA/SIPC and a subsidiary of BOK Financial Corporation. Services may be offered under our trade name, BOK Financial Advisors. NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
Savings from District’s Debt Management Practices Aledo Independent School District (the “District”) has actively deployed various debt management practices to lower the borrowing costs of taxpayers. Such actions have reduced the cost of voter-approved bonds and provided District taxpayers with more than $34.0 million of direct savings since year 2006! $ 26,764,651 – Bond Refundings/Prepayment of Bonds $ 7,250,253 – Lower Interest Rates from Prudent Use of Variable Rate Bonds $ 34,014,904 – Total Savings to Taxpayers ■ Variable Rate Debt: The District has strategically incorporated variable rate bonds within its debt portfolio since year 2006 – lowering its borrowing cost by approximately $7.25 million in comparison to the sale of fixed rate bonds. The District’s interest rate on its existing $13,710,000 Variable Rate Unlimited Tax School Building Bonds, Series 2006-A is currently 1.76% (does not include ongoing support costs such as remarketing agent fees, liquidity provider fees, etc.). 1
Savings from District’s Debt Management Practices ■ Bond Refundings and Prepayment of Bonds: 8 bond refunding programs at a lower interest rate and prepayment of $3.515 million of existing bonds – $26.8 million of savings. Summary of Interest Cost Savings – Bond Refunding Programs / Prepayment of Bonds Principal Amount Series Refunded / Refunded / Issue / Description Redeemed Redeemed Total Savings Unlimited Tax Refunding Bonds, Series 2006 1998 $ 23,035,000 $ 1,172,515 Unlimited Tax Refunding Bonds, Series 2007 1998 7,520,000 988,788 Unlimited Tax Refunding Bonds, Series 2012 2001, 2005-A 8,519,919 1,075,426 Unlimited Tax Refunding Bonds, Series 2013-A 2005-A 8,985,000 2,344,653 Unlimited Tax Refunding Bonds, Taxable Series 2013-B 2005-A, 2006 17,010,000 2,204,602 Unlimited Tax Refunding Bonds, Series 2014 2005-A 9,330,000 1,866,979 Unlimited Tax Refunding Bonds, Series 2015 2005-A, 2006, 2008 13,195,000 3,502,667 Unlimited Tax Refunding Bonds, Series 2016 2008 56,615,000 12,467,671 Total - Bond Refunding Programs at a Lower Interest Rate --- $ 144,209,919 $ 25,623,301 Prepayment of Series 2007 Bonds - February 2018 2007 $ 1,275,000 $ 552,750 Prepayment of Series 2007 Bonds - February 2019 2007 2,240,000 588,600 Total - Prepayment of Bonds Prior to Scheduled Maturity --- $ 3,515,000 $ 1,141,350 Totals --- $ 147,724,919 $ 26,764,651 2
Historical Tax Rates District’s Historical Tax Rates $4.00 Each year, the District is required to set two separate tax rates: $3.50 Maintenance & Operations (“M&O”) Tax Rate: Used for the “day-to-day” operational expenses such as teacher salaries, instructional programs and Property Tax Rate Per $100 Valuation $3.00 services, etc. Interest & Sinking Fund (“I&S”) Tax Rate: Used for annual debt service $2.50 requirements of bonds approved by voters. $2.00 $1.5950 $1.5950 $1.5950 $1.5950 $1.4252 $1.4252 $1.4252 $1.50 $0.4250 $0.4250 $0.4250 $0.4250 $0.2552 $0.2552 $0.3852 $1.00 $1.1700 $1.1700 $1.1700 $1.1700 $1.1700 $1.1700 $1.0400 $0.50 $0.00 2009/10 2010/11 2014/15 2015/16 2016/17 2017/18 2018/19 Maintenance & Operations Tax Rate Interest & Sinking Fund Tax Rate 3
Comparison of Certain Texas School Districts – Greater Dallas/Fort Worth Area Ranked By 2017/18 Student Enrollment 14,000 The following are the 12 Texas school districts within ESC Regions 10 and 11 with an enrollment between 5,000 – 12,500 12,000 12,221 students and enrollment growth between 15.0 – 50.0% over the last 10 years. 10,000 10,196 Student Enrollment 8,872 8,000 8,517 7,526 7,497 7,371 6,853 6,000 5,838 5,739 5,718 5,528 4,000 2,000 0 Burleson ISD Forney ISD Midlothian ISD Waxahachie ISD Little Elm ISD Sherman ISD Lancaster ISD White Settlement ISD Everman ISD Royse City ISD Aledo ISD Aledo ISD Joshua ISD 4 Source: Texas Education Agency – PEIMS.
Comparison of Certain Texas School Districts – Greater Dallas/Fort Worth Area Ranked By Student Enrollment Growth – Last 10 Years 3,500 3,181 3,174 3,000 2,500 Student Enrollment Growth 2,000 2,117 2,042 1,956 1,500 1,595 1,274 1,000 1,137 1,128 1,092 996 904 500 0 Aledo ISD Forney ISD Burleson ISD Little Elm ISD Midlothian ISD Waxahachie ISD Royse City ISD Aledo ISD White Settlement ISD Lancaster ISD Everman ISD Sherman ISD Joshua ISD 5 Source: Texas Education Agency – PEIMS.
Comparison of Certain Texas School Districts – Greater Dallas/Fort Worth Area Ranked By Percentage Student Enrollment Growth – Last 10 Years 50% 45% 45.3% 40% Percentage Student Enrollment Growth 39.1% 38.5% 35% 35.1% 30% 29.9% 29.8% 28.7% 25% 23.0% 20% 19.9% 19.6% 18.1% 15% 15.3% 10% 5% 0% Aledo ISD Forney ISD Little Elm ISD Royse City ISD Burleson ISD Midlothian ISD Waxahachie ISD Aledo ISD Everman ISD White Settlement ISD Joshua ISD Lancaster ISD Sherman ISD 6 Source: Texas Education Agency – PEIMS.
Comparison of Certain Texas School Districts – Greater Dallas/Fort Worth Area Ranked By Ending Unassigned General Operating Fund Balance As a Percentage of General Operating Fund Expenditures – Fiscal Year Ending 2018 40% Unassigned General Operating Fund Balance (% of Expenditures) 38.6% 35% 34.7% 31.6% 31.3% 30% 29.1% 28.4% 26.8% 26.5% 25% 24.7% 22.8% 21.1% 20% 16.9% 15% Aledo ISD Aledo ISD Sherman ISD Little Elm ISD Forney ISD Waxahachie ISD Midlothian ISD Burleson ISD White Settlement ISD Joshua ISD Everman ISD Royse City ISD Lancaster ISD 7 Source: Respective Audited Financial Statements and Texas Education Agency.
Comparison of Certain Texas School Districts – Greater Dallas/Fort Worth Area Ranked By Taxable Assessed Valuation – Year 2017/18 $5,000 $4,500 $4,399 $4,223 $4,000 Taxable Assessed Valuation ($ Millions) $3,929 $3,769 $3,500 $3,625 $3,278 $3,000 $3,088 $2,500 $2,289 $2,000 $1,884 $1,704 $1,500 $1,436 $1,306 $1,000 $500 $0 Aledo ISD Burleson ISD Midlothian ISD Little Elm ISD Waxahachie ISD Forney ISD Aledo ISD Sherman ISD Lancaster ISD White Settlement ISD Royse City ISD Joshua ISD Everman ISD 8 Source: Texas Comptroller of Public Accounts – Property Tax Assistance Division.
Comparison of Certain Texas School Districts – Greater Dallas/Fort Worth Area Ranked By Percentage Taxable Assessed Valuation Growth – Last 5-Years 120% 112.3% Percentage Taxable Assessed Valuation Growth 100% 80% 60% 56.8% 55.5% 54.7% 40% 41.0% 34.9% 32.8% 28.5% 27.9% 20% 18.5% 11.7% 0% (1.0%) (20%) Little Elm ISD Royse City ISD Lancaster ISD Forney ISD Midlothian ISD Waxahachie ISD Aledo ISD Sherman ISD Burleson ISD Everman ISD White Settlement ISD Joshua ISD Aledo ISD 9 Source: Texas Comptroller of Public Accounts – Property Tax Assistance Division.
Comparison of Certain Texas School Districts – Greater Dallas/Fort Worth Area Ranked By Taxable Assessed Valuation Per Student – Year 2017/18 $700,000 $600,000 Taxable Assessed Valuation Per Student $573,207 $500,000 $522,012 $476,033 $442,502 $400,000 $411,933 $359,969 $355,564 $300,000 $310,487 $296,933 $274,934 $259,757 $200,000 $223,673 $100,000 $0 Aledo ISD Aledo ISD Little Elm ISD Midlothian ISD Waxahachie ISD Sherman ISD Burleson ISD Forney ISD Lancaster ISD Royse City ISD White Settlement ISD Joshua ISD Everman ISD 10 Source: Texas Comptroller of Public Accounts – Property Tax Assistance Division and Texas Education Agency – PEIMS.
Comparison of Certain Texas School Districts – Greater Dallas/Fort Worth Area Ranked By Bond Principal Outstanding $400 $350 $362 $346 Bond Principal Outstanding ($Millions) $300 $304 $267 $250 $225 $220 $200 $206 $171 $150 $156 $118 $100 $104 $85 $50 $0 Aledo ISD Midlothian ISD Burleson ISD Little Elm ISD Forney ISD Waxahachie ISD Sherman ISD Lancaster ISD Aledo ISD White Settlement ISD Royse City ISD Joshua ISD Everman ISD 11 Source: The Municipal Advisory Council of Texas – As of August 31, 2018. Includes Voted and M&O debt.
Comparison of Certain Texas School Districts – Greater Dallas/Fort Worth Area Ranked By Bond Principal Plus Unissued Bond Authorization $600 $500 $120 Bond Principal ($Millions) $400 $60 $362 $346 $300 $304 $22 $267 $23 $200 $225 $220 $206 $6 $171 $35 $156 $100 $118 $104 $85 $0 Midlothian ISD Little Elm ISD Burleson ISD Forney ISD Waxahachie ISD Sherman ISD Lancaster ISD Aledo ISD Aledo ISD White Settlement ISD Royse City ISD Joshua ISD Everman ISD Bond Principal Outstanding Unissued Bond Authorization (As of August 31, 2018) 12 Source: The Municipal Advisory Council of Texas – As of August 31, 2018. Includes Voted and M&O debt.
Recommend
More recommend
