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District explains $15 million bond sale, says proceeds fund Central Campus roof, masonry work
Summary
Superintendent and finance staff reviewed the district’s April bond sale and construction schedule for Central Campus. Officials said the bond sale was competitively bid with an effective interest rate of about 4.52%, that much of the financed amount will be invested until used, and construction work is underway this summer on roofing and masonry.
The Lockport Township High School District 205 board received a detailed briefing on the district’s recent municipal bond sale and on construction work at Central Campus during its June meeting.
Administration reported the district completed a public bond sale on April 28 to finance capital projects. “The real interest rate is 4.52% on your bonds,” the superintendent told the board, noting that municipal bond sales are publicly competed and that the district used municipal advisors and underwriters to secure market rates.
Officials said the $15 million authorized borrowing will not all be spent immediately. About $9 million of the proceeds will be held and invested until needed for phased construction, and the district expects to earn interest on invested proceeds before disbursement. The administration explained that issuing the full financing now locks in a long‑term interest rate for the community and avoids repeated transaction costs for multiple smaller bond issuances.
Construction manager Neil Offerman (Brooklyn Construction) updated the board on the Central Campus work that is scheduled across two summers. The current summer focuses on roughly 30,000 square feet of roof and deck replacement plus masonry and lintel repairs. Offerman said the project is divided into phases and that needle shoring and scaffolding are in place; masons and roof crews are on site and the project is running “a couple days ahead of schedule.” He described the plan as a two‑summer project so school opening will not be jeopardized.
District staff reported additional measures tied to the bond program: the district has purchased cooperative liability insurance through CLIC and carries a $5 million cyber coverage policy. To secure the full cyber coverage benefit the insurer requires one more cybersecurity control estimated at about $11,000; the administration recommended making that modest investment to maintain eligibility for the policy.
Board members asked clarifying questions about the financing prospectus and the differences between yield and interest rate language found in underwriter materials. Administrators urged community members with questions to meet with district financial staff rather than rely on secondary summaries on social media. No vote on the bond sale was required at the meeting—the sale had been executed previously—and the board was provided construction and financing updates.
