GCISD to sell $188.6 million in bonds

Grapevine-Colleyville district officials plan to sell about $188.6 million in school bonds this week and expect the resulting increase in the tax rate to be lower than anticipated, thanks to low interest rates and rising property values.

In the original conservative cost estimate on the $249 million bond package voters approved in May, officials said the tax rate increase would be no more than 12.81 cents. Now it appears the rate should be at least 20 percent lower.

DaiAnn Mooney, chief financial officer, said the exact amount won’t be determined until after the bonds are sold. Administrators are hoping to take advantage of historically low interest rates in the market, now at 3 percent. The estimated interest rate for planning purposes was 4.5 percent.

The original tax impact was figured on a conservative 3 percent growth for 2016, but the actual boost in taxable values was more than 9 percent. Officials use conservative numbers to ensure they can raise the needed funds at a certain tax rate.

Mooney said that proceeds from the first bond sale will cover the rebuilding of the bulk of Cannon Elementary School and the two multipurpose indoor practice facilities at Colleyville Heritage and Grapevine high schools, along with many other improvements.

Some of the funds will go to providing new computers for students and staff and to improve the technology infrastructure. That money will be repaid within seven years, Mooney said. Buses, vehicles and some other short-term assets will have a 15 year payment period.

Long-term improvements will be paid over 25 years, although officials can pay off some amounts early to save interest in a favorable market. In the last five years, the district has saved almost $43 million in bond refundings (similar to refinancing at a lower interest rate) and prepayments.

Mooney said the sale amount was determined by the priority projects that would be started over the next three years. The remaining $60.4 million will be sold at a later date.

This story was originally published August 18, 2016 at 3:45 PM with the headline "GCISD to sell $188.6 million in bonds."