Bond Descriptions

Dallas College Bond Schedule

Maturities

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.

Tax Notes

On September 15, 2020, Dallas College issued $30,095,000 in Maintenance Tax Notes. The notes have a final maturity of February 15, 2022. The interest rate is 0.71% with principal installments payable each February 15 in the years 2021 ($3,835,000) and 2022 ($26,260,000). Interest is paid each February 15 and August 15 in 2021 and 2022.

Dallas College Bond Debt Service by Type

Advanced Refunding Bonds Debt Service 

Maintenance Tax Notes Debt Service Fiscal Year