The purpose of this is update you on the 2017 EPISD Bond. At yesterday’s Board Facilities Committee meeting, the current status and plans were discussed. They will be voted on at tonight’s Board meeting. These include number and amount of offerings, projected tax impacts and the fate of Central Office.
The 2017 EPISD Bond Oversight Committee will be will be formed tonight. It will consist of 20 members, two appointed by each Trustee (14), three (3) appointed by the Superintendent and one (1) each from the Greater Chamber of Commerce, the Hispanic Chamber of Commerce and, ”EPISD’s largest teacher association”. The latter is your EP AFT, with over 2300 active members.
2017 EPISD Bond Projected Financials.
The 2017 EPISD Bond will be offered in three series: Series 2017; Series 2018; and, Series 2019.
|
Series |
Amount |
Projected Interest Rate |
Duration |
|
2017 |
$200,000,000 |
4.10% |
25 Years |
|
2018 |
$250,000,000 |
4.45% |
25 Years |
|
2019 |
$218,695,577 |
4.65% |
25 Years |
Projected Tax Rates:
|
Tax Year (1.1 – 12.31) |
I & S Tax Rate (Maximum) |
M&O Tax Rate |
Total EPISD Tax Bill per $100 |
Increase Over 2017 |
|
2017 (Actual) |
$0.1650 (Actual) |
$1.07 |
$1.2350 |
$0.00/0.00% |
|
2018 |
$0.2400 |
$1.07 |
$1.3100 |
$0.075/6.1% |
|
2019 |
$0.3150 |
$1.07 |
$1.3850 |
$0.075/5.7% |
|
2020 |
$0.3530 |
$1.07 |
$1.4230 |
$0.038/2.7% |
|
Cumulative Max |
$0.3530 |
$1.07 |
$1.4230 |
$0.188/15.2% |
Comments:
1. Your 2017 Property Tax Bill will not increase due to the EPISD Bond. The increase will be phased in over the course of four years.
2. The I&S Tax Rates are based on a current, ‘worst case’ projection of the Bond Market. Unfortunately, an YISD bond offering will be hitting the Bond Market at the same time EPISD’s does, so it is a better than even chance that the I&S Tax Rate will be closer to the worst case estimate than not.
Central Office Relocation: The ‘Puzzle Palace’ lease runs out on May 31st, 2017. There is a lot of speculation as to the fate of the ‘Puzzle Palace’ and disinformation floating about. Here is what is known as of yesterday’s meeting:
1. The District will request two lease extensions, first until May 31st, 2018 and then until May 31st, 2019.
2. The District will begin negotiations after today’s meeting to acquire a parcel of land Downtown.
3. Once acquired, EPISD will enter the architectural and engineering phases.
4. During 2017 Police Services, Network Services and potentially others will be relocated out of the ‘Puzzle Palace’ to other District properties.
5. 2017 EPISD Bond funds will NOT be spent on the new puzzle palace.
6. It will be financed by the Public Facility Corporation (PFC) bonds set up in February of 2015.
7. The PFC is limited to $29,250,000.
8. Of that, $29,067,000 will come from Federally subsidized Qualified School Construction Bonds, which will cost less.
9. They rejected my suggestion of not building a new Puzzle Palace and just gather in assigned Starbucks and Village Inns around town.
More to follow after tonight’s meeting.
In Solidarity,
Ross