Midland ISD Sells $500 Million in Bonds at 5% as Two New High Schools Rise

Midland ISD has sold its latest round of bonds from the $1.4 billion program voters approved in November 2023. The district says strong demand from investors pushed its interest rate below what it had planned for.

The sale

The offering totaled about $500 million and combined new money with refinanced debt, according to a Sept. 18 district news release. Orders reached about $1.6 billion from nearly 70 investor accounts.

The bonds closed at an effective rate of 5.004 percent. The district's bond planning had assumed 5.50 percent. Against that planning rate, the district says the sale saves taxpayers about $54.89 million in interest. The bonds will be repaid over 30 years.

Moody's kept the district's Aaa rating, its highest, and S&P kept its AA rating with a stable outlook. The district says it has avoided about $212.1 million in interest since 2012 through refinancing and paying down debt. That figure includes about $58 million from a recent refunding.

"Responsible financial management is about more than the decisions we make today; it is about the long-term impact those decisions have on our taxpayers," Superintendent Dr. Stephanie Howard said.

A word on "savings"

The savings figures compare actual rates with the district's own planning assumption. They are not money returned to taxpayers. The debt is real. Paying back about $500 million over 30 years at 5 percent will cost a great deal in interest. A lower rate is good news, but it does not make the borrowing small.

Where the work stands

The district's September bond update said the new Midland Lee High School was 43 percent complete and ahead of schedule. The new Midland High School was 29 percent complete and on schedule. Both are set to open in August 2028. The update listed no bond projects over budget.

Renovations at Abell and San Jacinto middle schools, known as Package 9, were set to begin construction in November. Work at Emerson, General Franks, Travis, Parker, Sam Houston and South schools, and at the district police department, is expected to finish by January 2027.

The board's next regular meeting is Tuesday, Oct. 20, at 5:30 p.m. at Bowie Fine Arts Academy. Residents who want to see where the money is going can show up and ask. For other bond decisions in front of Texas voters, see Dock Line's look at Collin County's $817.5 million package and Lubbock-Cooper ISD's tax rate election.

Hero photo: Quintin Soloviev via Wikimedia Commons, CC BY 4.0, cropped and resized.