TEXAS BOND REVIEW BOARD ANNUAL REPORT

TEXAS BOND REVIEW BOARD

ANNUAL REPORT

TEXAS BOND REVIEW BOARD

ANNUAL REPORT FISCAL YEAR 1990

Year Ended August 31, 1990 William P. Clements, Jr., Governor, Chairman

William P. Hobby, Lieutenant Governor Gibson D. (Gib) Lewis, Speaker of the House of Representatives

Bob Bullock, Comptroller of Public Accounts Ann W. Richards, State Treasurer

Tom K. Pollard, Ph.D. Executive Director

November 1990

INTRODUCTION

During fiscal year 1990, the Bond Review Board approved and Texas state agencies and universities issued $1.1 billion in bonds and executed $12.6 million in lease or installment purchases.

The 1990 Annual Report of the Bond Review Board presents an overview and analysis of Texas state bond debt.

Texas state bonds, unless specifically exempted, may be issued only with the Board's approval. State agencies also must obtain the Board's approval prior to executing lease- or installment-purchase agreements for acquisitions in excess of $250,000 or which are financed for more than five years.

This report examines a number of areas related to the issuance of state bonds.

The affirmation of Texas' AA bond rating, growing investor confidence in the state's creditworthiness and other bond market trends affecting Texas are reported in Chapter I.

Texas bond issuance during fiscal year 1990 to finance projects including the Superconducting Super Collider, University of Texas research facilities, affordable housing, extension of the Dallas North Tollway and expansion of Texas' prison system is analyzed in Chapter 2.

Chapter 3 examines the various costs involved in issuing Texas bonds. The chapter presents average costs for fiscal year 1990 for both negotiated and competitively sold bonds and traces recent issuance cost trends.

Total Texas bonds outstanding at the end of fiscal year 1990 and the annual debt service requirements associated with these bonds are reported and analyzed in Chapter 4.

Chapter 5 assesses Texas' debt from a state policy perspective. Appendix A includes a capsule summary of each series of bonds approved by the Board and issued during 1990. Appendix B provides a list of each state bond issue expected during fiscal year 1991. Appendix C contains a description of each program under which state bonds may be issued. Appendix D contains the current administrative rules of the Board.

Tom K. Pollard, Ph.D. Executive Director Texas Bond Review Board

iii

CONTENTS

Introduction

111

Chapter 1: Texas in the Bond Market- 1990

1

Chapter 2: Texas Bond Issuance - 1990

7

Chapter 3: Texas Bond Issuance Costs

12

Chapter 4: Texas Bonds Outstanding

16

Chapter 5: Texas Debt in Perspective

22

Appendix A: Texas Bonds Issued During 1990

26

Appendix B: Texas State Bond Issues

Expected During 1991

34

Appendix C: Texas State Bond Programs

35

AppendixD: Bond Review Board Rules

43

V

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