Bond Descriptions

​D​​allas College Bond Schedule

Advance Refunding Bonds:

On June 2, 2016, the College advance refunded $131,580,000 of its outstanding Series 2008 General Obligation Bonds (“Series 2008 Bonds”) by issuing $122,415,000 of Series 2016 General Obligation Refunding Bonds (“Series 2016 Refunding Bonds”). All Series 2016 Refunding Bonds have been issued to date. The average interest rate is 1.603% with coupons of 3% or 5%. After payment of $665,812 in underwriting fees and issuance costs, all resources from the Series 2016 Refunding Bonds, including a transfer of $2,167,946 from prior issue debt service funds, were used to purchase U.S. Government Securities. These were deposited in an irrevocable trust with an escrow agent for all future bond payments on the refunded Series 2008 Bonds. The Series 2008 Bonds that were refunded are considered fully defeased for maturities 2019 and later and the liability for those bonds have been removed from the Statements of Net Position. Advance Refunding of the Series 2008 Bonds reduces the College’s debt service by $28,302,750. An economic gain of $22,580,683 was obtained by the advance refunding. The difference of the reacquisition price of the new debt and the net carrying amount of the defeased bonds resulted in a $7,421,376 deferred outflow and is being amortized over the life of the new debt by the effective interest method.

On July 6, 2017, the College advance refunded $64,105,000 of its outstanding Series 2009 General Obligation Bonds (“Series 2009 Bonds”) by issuing $60,665,000 of Series 2017 General Obligation Refunding Bonds (“Series 2017 Refunding Bonds”). All Series 2017 Refunding Bonds have been issued to date. The average interest rate is 1.780% with coupons of 3% or 5%. After payment of $441,703 in underwriting fees and issuance costs, all resources from the Series 2017 Refunding Bonds, including a transfer of $1,290,002 from prior issue debt service funds, were used to purchase U.S. Government Securities. These were deposited in an irrevocable trust with an escrow agent for all future bond payments on the refunded Series 2009 Bonds. The Series 2009 Bonds that were refunded are considered fully defeased for maturities 2020 and later and the liability for those bonds have been removed from the Statements of Net Position. Advance Refunding of the Series 2009 Bonds reduces the College’s debt service by $15,619,702. An economic gain of $10,541,225 was obtained by the advance refunding. The difference of the reacquisition price of the new debt and the net carrying amount of the defeased bonds resulted in a $2,461,665 deferred outflow and is being amortized over the life of the new debt by the effective interest method.

On October 11, 2022, the College advance refunded $22,450,000 of its outstanding Series 2016 General Obligation Refunding Bonds (“Series 2016 Refunding Bonds”) by issuing $22,450,000 of General Obligation Refunding Bonds, Taxable Series 2022 (“Series 2022 Refunding Bonds”). All Series 2022 Refunding Bonds have been issued to date. The interest rate and coupon rate are 3.85%. After payment of $69,664 in underwriting fees and issuance costs, all resources from the Series 2022 Refunding Bonds, including a transfer of $1,330,000 from prior issue debt service funds, were used to purchase U.S. Government Securities. These were deposited in an irrevocable trust with an escrow agent for all future bond payments on the refunded Series 2016 Refunding Bonds. The Series 2016 Refunding Bonds that were refunded are considered fully defeased for maturities 2027 and later and the liability for those bonds have been removed from the Statements of Net Position. Advance Refunding of the Series 2016 Refunding Bonds reduces the College’s debt service by $3,075,738. An economic gain of $1,631,427 was obtained by the advance refunding. The difference of the reacquisition price of the new debt and the net carrying amount of the defeased bonds resulted in a $798,308 deferred outflow and is being amortized over the life of the new debt by the effective interest method.

General Obligation Bonds

On January 5, 2023, the College issued the first tranche of GO bonds approved by the voters in the May 2019 $1.1 billion bond election. The Series 2023 Bonds have a par amount of $325,845,000 and were sold with a reoffering premium of $26,033,769. The bonds were sold in $5,000 increments with an interest rate of 5.0% and maturity dates from February 15, 2023 to February 15, 2037. The cost of issuance and underwriter’s discount totaled $1,857,335. The bond issuance was delayed due to a lawsuit filed in 2019 to invalidate the voting results; the lawsuit has since been resolved in our favor. In April 2022, the Board approved the reimbursement resolution allowing the College to reimburse itself for expenditures related to the bond projects. In January 2023, $98,187,706 of the bond proceeds were used for the reimbursement. Proceeds of the bonds are being utilized for the purpose of constructing and equipping school buildings for the College and acquiring real property. The bonds were issued and the tax levied for their payment, pursuant to authority conferred by the Constitution and laws of the State of Texas.

Maintenance Tax Notes

On October 21, 2021, pursuant to authority conferred by the Constitution and the laws of the State of Texas, including Section 45.108 and 130.084, Texas Education Code, as amended, the College issued $51,000,000 of Tax Notes (“Series 2021 Notes”). The proceeds of the notes are being used to pay for planned technology upgrades associated with various facilities of the College. The notes are direct obligations of the College payable from a continuing direct annual ad valorem tax pursuant to the College’s maintenance tax authority, with limits prescribed by law, on all taxable property in the district. Debt issue costs of $80,875 were expensed. On July 12, 2022, $7,769,911 of the 2021 Notes were defeased. Debt issue costs related to the defeasance were $10,000 and was expensed. As of August 31, 2023, the outstanding amount of the 2021 Notes was $22,220,000.

Dallas College Bond Debt Service by Type

Advanced Refunding Bonds Debt Service

General Obligation Debt Service

Maintenance Tax Notes Debt Service