Ysleta ISD approves $32 million loan during special meeting
EL PASO, Texas (KVIA) — Wednesday, the Ysleta Independent School District unanimously approved a $32 million loan to help cover payroll and other expenses.
District leaders said the money will be used while they wait for state or tax revenue to come in.
The original loan for $63.2 million was approved in May from two different lenders. A YSID Spokesperson said,” Morgan Stanley expressed concern about a report from the district’s Internal Auditor.” One of the lenders backed out after documents included the lender’s name and after public discussion about the district’s financial state.
Addressing the setback, Superintendent Dr. Xavier De La Torre reflected on the administrative process that led to the public board meeting, noting that naming the specific financial institution prematurely complicated matters.
“Because we placed their name in the documents, we were tied to that bank,” De La Torre said. “In hindsight, it may have been better to leave the documents without the actual name of the institution so we wouldn’t have to call you back.”
The special meeting ended in a 6-0 vote. The tax revenue and anticipation loan will not exceed $32 million.
While Dr. De La Torre initially expressed uncertainty regarding whether a replacement loan would carry the same financial terms, Chief Financial Officer Lynly Cambern provided the board with the updated figures—and the new loan comes at a higher price tag.
Because the district was forced to secure a replacement lender on the open market, interest rates increased.
“The terms are slightly different; the interest rate is slightly more,” Cambern explained. “The original lender quoted us at 3.6%, and this lender, because it’s in the open market—the true interest cost is 4.3%.”
Despite the higher interest rate, the district secured the necessary funding to bridge the gap until state tax revenues arrive.
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