8 Dec 2008
2008 Bond Program to Begin Soon
DALLAS–Despite rapidly deteriorating conditions in the bond market, the Dallas Independent School District sold nearly $400 million in bonds last week.
The sale of the bonds means that the first phase of the district's $1.35 billion bond program will begin in earnest throughout all of next year.
"The 2008 bond program approved by voters in May will bring about renovations at nearly every campus in Dallas ISD," said Michael Hinojosa, Superintendent of Schools. "The district will add 15 new schools and build additions to 12 campuses during the course of the next three to four years."
Part of the reason that the bonds sold so quickly was a guarantee provided by the state's Permanent School Fund that made them more desirable to investors. The guarantee placed a AAA rating on the sale of the district's bonds.
"This next year will be one of planning, preparation and the hiring of architects and engineers," said Hinojosa. "By the end of 2009 and going into 2010, we should see a great deal of construction beginning throughout the district that will ultimately improve the learning environment for literally tens of thousands of Dallas ISD students."
The bonds' blended true interest cost is 5.68%. The net proceeds to the district will be $400 million and will be deposited in the Capital Projects Fund on December 11, 2008.