School Board awards $7M bond sale to Baird for facility upgrades

In a significant move for Owatonna Public Schools, the Board approved the sale of $7.05 million in bonds aimed at enhancing school facilities and ensuring health and safety improvements. The bond sale, which took place on March 24, 2025, was facilitated by Ehlers, a financial advisory firm, and attracted six competitive bids, with the winning bid awarded to Baird of Milwaukee at a low interest rate of 3.56%.

The funds from this bond will primarily support facility maintenance projects, including crucial upgrades for indoor air quality and asbestos remediation. Additionally, a portion of the bond proceeds will be allocated to the betterment of school facilities, reflecting the district's commitment to providing a safe and conducive learning environment for students.

The bond sale's favorable terms are expected to result in a total debt service reduction of approximately $1.1 million compared to earlier estimates. This reduction is attributed to lower-than-expected construction bids and competitive interest rates, which will ultimately benefit taxpayers by minimizing the financial burden associated with school improvements.

The bonds are callable, allowing the district the option to refinance them in the future if market conditions become more favorable. The closing date for the bond proceeds is set for April 17, 2025, marking a pivotal step in the district's ongoing efforts to enhance educational facilities.

In addition to the bond sale, the meeting included discussions on the district's strong credit rating from Moody's, which reflects sound financial management and robust community demographics. This positive rating is crucial as it supports the district's ability to secure funding for future projects.

Overall, the bond sale represents a proactive approach by Owatonna Public Schools to invest in its infrastructure, ensuring that students have access to safe and modern learning environments while also being mindful of the financial implications for the community.