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.