Back in EPISD bonds–the story changes we pointed out that EPISD officials were saying one thing to the newspaper and another to the bond advisory committee.
Using the same slide and reading the December 20, 2016 bond order we can see yet another instance where they have failed to tell the whole story.
The chart below shows their plan to issue bonds in 2017 at 3.9%.
According to the December 20, 2016 bond order “the maximum true interest cost of the Bonds shall not exceed 5.00%”.
Further, the chart shows numbers assuming a “AAA” interest rating. According to a recent article in the Times, Standard and Poors has the district at an “AA-” rating and Fitch just upgraded the district to “AA”.
The district authorized both the superintendent and the deputy superintendent of finance and operations (aka “fuzzy math lady from the city”) to sell the bonds.
If the bonds are sold with an interest rate of 4.5%, over the 25 year life we will pay $189 million in interest on the original $200 million to be sold in this issuance.
We deserve better