McAllen, McAllen ISD, Board of Trustees, Bond Sale, Deaf Awareness Month, School Safety Grant
Arnoldo Mata
McAllen TX - The McAllen Independent School District Board of Trustees met Aug. 25, receiving a report on the district’s recent bond sale, tabling a proposed update to its facilities construction policy, and approving human resources recommendations for the 2026-2027 school year. There were no public comments at the meeting.
Deaf Awareness Month
The board adopted a proclamation declaring September 2026 as Deaf Awareness Month, recognizing students and staff from the district’s Regional Day School Program for the Deaf. Board President Lucia Regalado read the proclamation, which stated the purpose of Deaf Awareness Month is to raise awareness of the issues and culture of people who are deaf and hard of hearing, and to promote equal access to information, educational programs and services. The proclamation was approved 7-0.
Bond Sale Report
Representatives from Estrada Hinojosa, the district’s financial advisor, and Samco Capital, the senior underwriter, presented details of the sale of the district’s Unlimited Tax School Building Bond Series 2026. Voters approved a $335 million bond program on May 2, 2026, to modernize campuses, expand programs and enhance safety and security. The board authorized issuance of the bonds June 23, and the bonds were priced Aug. 11.
According to the presentation, the district borrowed $96,205,000, but received a premium of $4.7 million, for a total of $100,938,445 received, with $100 million deposited into the district’s construction fund. The bonds carry a true interest cost of 4.587%, with a final maturity date of February 2056.
Andrew Kim, with Samco Capital, said the bond offering was oversubscribed across all maturities, allowing the district to reduce yields by two to six basis points in various maturities. “That shows the level of strength of interest of those investors that are out there in looking for school district bonds,” Kim said. Kim noted that timing played a role in the results, saying, “Certainly, your FA in terms of structuring the school district folks in terms of meticulous details and the pricing calls, and certainly delivered a good value to the school district.” Kim said Samco Capital retained $2.11 million in unsold balances in its own accounts. Top purchasers of the bonds included Vanguard, Wasmer Schroeder & Company, PGIM Incorporated and Fidelity Investments.
Estrada Hinojosa representative De Los Santos said the district’s standalone bond rating is Aa2, calling it “a very strong rating,” and noted he was unaware of another school district in the region holding that rating level. De Los Santos said the rating, combined with the Texas Education Agency’s Permanent School Fund guarantee, allowed the district to go into the bond market with a AAA rating, the highest available.
A second Samco Capital representative, referred to in the discussion as continuing the bond presentation, credited the district’s finance staff and superintendent for the strong rating outcome: “The team really did really well for y’all. They represented you very well, and again, it was a good rating.”
Kim said the district plans to structure future bond sales to maintain its current overall tax rate of 93.22 cents, with an estimated $235 million remaining to be issued in a future series anticipated in spring 2027. He said the approach is designed to avoid exceeding the district’s tax rate. “We’re trying to do this in a methodical way, and in a way that you can get your projects done in a timely manner,” Kim said. “We couldn’t do all 300 in one shot in one year, right? So we’re trying to space this out, maintain the tax rate.”
In response to a question from a trustee about a projected decrease in the interest and sinking tax rate in 2028 and beyond, De Los Santos said, “Eventually, that total tax rate will be at about 18 cents once all the bonds are sold. But that 18 cents will be balanced out with your compression M&O side going down.”
Facilities Construction Policy Tabled
The board discussed a proposed second-reading update to board policy CV, Local Facilities Construction, which would raise the threshold requiring board approval for construction contracts and change orders from $50,000 to $100,000, aligning with a related purchasing policy also under consideration.
One trustee raised concern about language in the policy suggesting the board could waive requirements when change orders increase a contract’s value by more than 25%, saying, “I just didn’t want to adopt a policy that is trying to say that it trumps the law.” The trustee proposed alternative language stating that “if a proposed change order individually or cumulatively would increase the original contract amount by more than 25 percent, the district shall obtain legal and procurement review before authorizing the additional work,” and that “the board may not waive a requirement imposed by statute, regulation, grant, condition, or other controlling law.”
Chief Human Resources Officer Albert Canales confirmed change orders come to the board for approval regardless of dollar amount. Another trustee noted that in practice, change orders are rare because the district’s facilities director builds a roughly 10% contingency into construction budgets, but said the board had not previously dealt with a bond program of this size and supported tabling the item for further review. The board voted to table the policy for further review of the proposed language.
Other Business
The board approved a list of certified Texas Teacher Evaluation and Support System appraisers for the 2026-2027 school year, and an affiliation agreement with Angelo State University for a clinical teaching practicum program. Canales said the appraiser list allows certified administrators to “go in and start observing our teachers.”
The board also received a report on the district’s intention to apply for a fiscal year 2026 COPS School Violence Prevention Program grant through the U.S. Department of Justice. A district police representative, identified in the discussion as Chief Williams, said the district applied for approximately $625,000, including a required 25% local match, to fund security cameras across the district. The grant, if awarded, would cover a three-year period, with a funding decision expected within about a month and a half.
The board received an update on a Texas Association of School Boards staffing review currently underway, examining staffing practices across instructional, administrative and support roles districtwide. Canales said the review has already begun with surveys sent to coordinators, principals and administrative teams, with an on-site portion to follow. “We’re hoping to have this completed by the end of September, and come back to the board in October with the study results,” Canales said.
Closed Session
The board went into closed session to discuss human resources recommendations, employee resignations and retirements, school safety and security, pending litigation, and possible real estate acquisition. Upon returning to open session, the board approved human resources recommendations for the 2026-2027 school year by a vote of 5-0. No action was taken on the remaining closed session items; regarding pending or potential litigation, legal counsel reported there was “not a new report.”
The board scheduled its next regular meetings for Sept. 8 and Sept. 22, 2026, both at 5:30 p.m. in the Dr. J.A. Gonzalez Chapa Boardroom of the Administration Building. The meeting adjourned at 6:56 p.m.