School district discusses $10.75M bond issue for construction funding

The Forest Lake Area Schools are gearing up for a significant financial move, with plans to issue $10.75 million in bonds aimed at funding essential projects. During the recent school board meeting, officials outlined the financial framework surrounding this bond issue, which includes an estimated reoffering premium of $500,000. While this figure is not guaranteed, it reflects the current interest from underwriters, indicating a strong demand for municipal bonds.

The bond proceeds are expected to be available by May 22, with the district planning to utilize these funds over time as projects progress. After accounting for underwriter discounts and legal costs, the net amount available for project costs is projected to be approximately $11 million. This financial strategy is part of a broader plan to maintain a stable or declining tax rate, unless voters approve any increases.

The anticipated interest rate for this bond issue is estimated at 3.95%, a figure that reflects ongoing interest in municipal bonds despite recent market volatility. The district's long-term debt and capital levies plan was also discussed, highlighting the importance of maintaining fiscal responsibility while addressing future funding needs.

As the Forest Lake Area Schools move forward with this bond issuance, the community can expect continued transparency regarding tax rates and project funding, ensuring that educational facilities remain a priority.