MISD Bond 2023 Financial Dashboard

MISD SAVES TAXPAYERS $35.8 MILLION WITH DEFEASANCE

District plans to continue aggressively paying down debt

August 15, 2024 – This week, MISD finalized the defeasance of a significant portion of outstanding debt prior to Series 2024. The defeasance was approved during the July 2024 regular meeting of the Board of Trustees and resulted in additional savings for taxpayers. The defeasance saved taxpayers $35,812,950 on top of the $56,240,128 million that has been saved since 2012. 

“We are proud to save taxpayers this additional $35.8 million through thoughtful planning over the past decade,” said MISD Chief Financial Officer Tucker Durham. “It is our goal to provide superior financial stewardship to our taxpayers, and this is one way we are achieving our role as fiduciaries.”

After the defeasance, the district is left with an outstanding principal amount of $15,930,000, down from $125,059,986. The district plans to continue aggressively paying down debt to save taxpayers money in the long run, as shown by its track-record over the past decade. 

Since 2012, the district has saved taxpayers $92,053,078 through refinancing and defeasing existing debt. 

“We will continue monitoring our debt portfolio and aggressively paying down debt based on market trends moving forward,” said Durham. “This will help us to ensure our efforts are in the best interest of the district and community.”

MISD releases bond financial dashboard

District provides community with financial transparency surrounding Bond 2023 projects

May 15, 2024 — Midland Independent School District is pleased to unveil its financialdashboard related to Bond 2023. The dashboard was developed with community members in mind and aims to be user-friendly.

The initial landing page on the financial dashboard reflects the bond budgets by project packages. Filters allow viewers to dive deep into specific projects. Additional pages on the dashboard include bond budgets broken down by campus, assigned project packages by campus, the scope of work at each campus, total dollar amounts assigned for each project category, and project percentage completion by expenditure.

As projects near completion, the percentage of completed line items will continue to rise while the percentage remaining will continue to decrease until all projects outlined in the bond program are completed.

“The financial dashboard was created to provide the Midland community financialtransparency related to projects of the 2023 MISD school bond,” said MISD Chief Financial Officer Tucker Durham. “Our hope is that this comprehensive tool will give taxpayers confidence in the projects and financial spending of the bond projects.”

The dashboard, along with additional financial information, can be found at midlandbond2023.com/finance. The goal of the dashboard is to provide the community with the utmost transparency regarding the financial aspects of the school bond. The website will be regularly updated with information throughout the duration of the bondprogram.

High investor demand for MISD bond pushes interest rate lower

30-year bond finalizes at 4.09%

March 6, 2024 — The first of two bond offerings from 2023’s successful Midland ISD bondelection hit the market Tuesday, and investors were eager to buy in.

The interest rate for the Series 2024 bond is 4.09%, paid semi-annually. It was anticipated during planning that the bond would have a rate of 5.25%; however, incredibly high demand from investors pushed the rate down.

In the first 30 minutes, there were twice as many orders than what was available. After 90 minutes, that figure rose to 5.6 times “oversubscribed.”

“There were 130 different investors who placed orders, which speaks highly of the district’s credit rating and recognition in the market,” said Tucker Durham, MISD Chief Financial Officer.

Residents in Midland and Ector counties received first priority. 

The Series 2024 bond amount is $873,930,000, has a 30-year term and was given an Aaa rating by Moody’s and AAA by S&P. Raymond James was the senior underwriter. Other underwriters were Frost Bank, BOK Financial, Baird, FHN Financial and Estrada Hinojosa.

The bonds are structured for a 30 year repayment, which is what the bond planning was based around. Assuming the bonds are paid to maturity, and no early payments or refinancing takes place, the estimated overall cost is $310 million less than originally estimated during the bondplanning process.

The second offering is anticipated for 2026. 

MISD holds an Aa1 bond credit rating from Moody’s, which recently improved its outlook to “positive” from stable. S&P rates the district AA. MISD also carries a AAA rating from the TexasPermanent School Fund.

In November, voters approved a $1.4 billion school bond that will include the construction of new Midland and Legacy high school campuses, construction of a new elementary school in the Lone Star Trails area of Midland, safety and security upgrades, and improvements to aging facilities districtwide.

MISD bond credit ratings remain high

Midland, Ector County residents to get priority for investing in school bond

February 28, 2024 — The Moody’s and S&P bond credit rating agencies have once again given Midland ISD high marks, which can lead to low interest rates for the upcoming bond sale.

Moody’s issued MISD an Aa1 rating and improved its outlook to “positive” from “stable.” S&P confirmed its AA rating. 

“These high ratings are great for both bond investors and Midland taxpayers,” said Tucker Durham, MISD Chief Financial Officer. “They show investors that MISD bonds are a low-risk investment. For the taxpayer, these ratings should result in a lower interest rate, saving on total repayment.”

The district also carries a AAA rating from the Texas Permanent School Fund.

The first bond offering is anticipated on or about Tuesday, March 5. Residents in Midland and Ector counties will receive first priority. Raymond James was selected as the senior underwriter.

In November, voters approved a $1.4 billion school bond that will include the construction of new Midland and Legacy high school campuses, construction of a new elementary school in the Lone Star Trails area of Midland and improvements to campuses districtwide.

Voters approve Midland ISD $1.4 billion school bond

November 7, 2023 — Midland County has released unofficial results and determined Midlandvoters passed a $1.415 billion school bond Tuesday. Midland ISD is grateful for the community’s support of the projects in the bond. This is the first school bond in Midland to address secondary schools in 20 years.

The bond was approved 56.12% (12,404 votes for) to 43.88% (9,699 votes against) with 22,103 voters participating in the election. The final voting results from Midland County are unofficial until the Midland ISD Board of Trustees canvass the election results at a Special School Board Meeting set for noon Friday, Nov. 17.

The called bond election was a culmination of 18 months of work that began with a Long-Range Planning Committee in 2022. From February through July of this year, a 100-member citizen, staff and student committee reviewed the work of the Long-Range Planning Committee, facilities assessments, growth projections and a demographic study to identify the needs of existing facilities and the future of infrastructure for the district. The committee identified facilities and projects to serve all students across multiple grade levels and programs, and discussed grade reconfiguration, building capacities, the budget outlook and inflationary impact on construction materials and labor. 

The funds from the school bond will allow the district to implement grade reconfiguration by building two comprehensive high schools to accommodate ninth through 12th grade students; moving to a traditional middle school model of sixth through eighth grade students; and elementary schools housing pre-kindergarten through fifth grade students across the district. The bond will address safety and security and aging facility needs district-wide, as well as build a new elementary school in northeast Midland. 

The website midlandbond2023.com contains detailed information on the projects and initiatives made possible by this crucial investment in the educational infrastructure of Midland. The website will continue to be updated throughout the course of the work that is part of Bond 2023. 

Key projects that will benefit from the school bond include:

• Grade Reconfiguration: The restructuring to a traditional sixth through eighth grade middle school model and moving ninth graders to the comprehensive high schools will allow for the expansion of advanced coursework, electives and lessen travel time.
• Modernized Facilities: Aging schools will receive much-needed updates to provide students with a safe and inspiring learning environment.
• Improved Safety Measures: Safety is a top priority, and the bond will provide the necessary resources to enhance security in schools district-wide.
• Upgraded Technology: The bond will enable us to invest in up-to-date technology infrastructure to enhance the learning experience and prepare our students for the digital age they will encounter after graduation.

“Thank you to the Midland community for recognizing the importance of investing in our children’s education and their future. In Midland ISD, we are truly educating the future,” said Superintendent Dr. Stephanie Howard. “On behalf of our students and staff, I am so thankful for the community’s trust and support.”

“Thank you to the Bond Planning Committee who, from the beginning, was committed to developing a bond program the community would get behind and support,” Howard continued. “Our community is growing, and I appreciate our community for recognizing that this growth has created needs that cannot be met in our existing aging secondary facilities.”  

Midland ISD will work diligently to ensure the bond funds are utilized efficiently and to complete the approved projects on time and within budget. Monthly reports will be presented to the Board of Trustees during regularly scheduled board meetings. Quarterly reports will be presented to the Bond Advisory Committee made up of community members and stakeholders, and annual meetings will be held to bring the Bond Planning Committee back together for a recap of the year’s projects and upcoming projects.