Board Agenda - January 16, 2007

VIII. Consider Plano ISD Unlimited Tax Bonds, Series 2007

Presenter: Richard Matkin

Purpose: A - Request decision - closure required

Time: 10 minutes

Description:

Attached is a draft of the bond order with exhibits. The table on page 1 of the bond order indicates the Amount Being Issued to be $76,670,000. The total proceeds to be received will be $78,785,000. The difference between the two figures relates to the reoffering premium that will be generated and applied to the voted authorization.

Bonds are being offered by a competitive bid process that was placed in the market on January 5, 2007. This is the third issue of the bonds authorized by the voters in the August 21, 2004 election. No refunding bonds are included in this sale. Bids are due on Tuesday, January 16, 2007. Pricing and rates will be reviewed with the Board, during the board meeting by the District's Financial Advisor, First Southwest Company. Funds are estimated to be received in mid-February.

As with every bond sale, the rating agencies review the District's most recent Comprehensive Annual Financial Report and interview staff in the Business Services Department as to fiscal year-end projections for the end of the current fiscal year and the outlook for the 2007-08 budget and financial position of the District. The District has received an upgraded rating from Moody's to Aa1 from Aa2. The Aa1 rating is the highest bond rating held by any school district in Texas. The District has a strong underlying AA rating with a stable outlook from Standard & Poor's. A report on the rating from Standard & Poor's will be available at the meeting on Tuesday.

Recommendation:

The administration recommends sale of $76,670,000 Unlimited Tax School Building bonds, Series 2007.

Business Impact:

To be determined by the bids received.

Summary:

Appendix:

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