ECISD Board to discuss tax rate ordinance

Ector County Independent School District board members meet Tuesday, March 22, 2022, at the ECISD Administration building. (OA File Photo)

The Ector County ISD Board of Trustees will consider approving a tax rate ordinance during their regular 6 p.m. meeting Tuesday in the first-floor board room at the administration building, 802 N. Sam Houston Ave.

If approved, the total tax rate for 2023-24 will be $1.014 per $100 valuation.

The total rate had been $1.17 per $100 valuation.

The maintenance and operations rate will be $.7596 per $100 valuation and the interest and sinking (debt service) will be $.2544 per $100 valuation.

Trustees also will discuss and consider adoption of an order to pay off a portion of the district’s outstanding bonds early with a view toward reducing future interest costs.

The board will discuss and consider a resolution for the defeasance and redemption of a portion of the following bonds totaling $34,435,000 for a savings of $6,137,250 in future interest costs. According to the LoanBase website, “Defeasance is a process that borrowers can use to retire a bond early. To defease a bond, the borrower must pay off their debt using collateral securities. These securities are typically government bonds or corporate bonds.”

  • Unlimited Tax School Building Bonds, Series 2013; the principal to be prepaid is $12,290,000 for $3,020,250 in savings, supplemental agenda material said.
  • Unlimited Tax Refunding Bonds, Series 2016; the principal to be prepaid is $13,370,000 for a savings of $1,011,000.
  • Unlimited Tax Refunding Bonds, Series 2020-A; principal to be prepaid is $8,775,000 for savings of $2,106,000.

The resolution also includes an escrow agreement to hold the funds until such time the bonds are callable.

The administration recommends approval of defeasance and redemption of a portion of Series 2013, Series 2016 and Series 2020-A Bonds.

Under special presentations, Advanced Placement scholars will be recognized; UIL state VASE (Visual Arts Scholastic Event) qualifiers will be recognized; and the 2023-24 Education Foundation grants will be presented.

Reports and agreements are also on the agenda and the board will go into closed session for a Level III grievance hearing regarding Rachel Hurford.