The finance committee moved to forward concurrence with a JPMorgan Chase bank loan that will restructure $16,231,000 of district debt, a staff presenter told the committee. Settlement is scheduled for Aug. 29 and the final fixed, noncallable rate was reported as 3.6 percent.

The loan emerged from a dual-track process that compared a bank loan offer with a bond issuance. “This JPMorgan proposal was a little bit better than the bond market, which is why we recommended accepting this proposal,” the finance presenter said.

Nut graf: The restructuring shifts principal that would have been due in the current and next fiscal years into later years, producing near-term budget relief while increasing payments in the early 2030s. Staff said the restructuring yields $14,176,156 in total budgetary savings over two years and provides about $8.9 million of relief in the current fiscal year and about $5.278 million in the next fiscal year.

Committee discussion and supporting details focused on timing, rate, and the district’s state construction reimbursement (PlanCon). The presenter said the bank’s original indicative rate was 3.64 percent and the team captured a 4-basis-point improvement before settlement to reach 3.60 percent. The presenter described the loan as “noncallable” and said that feature makes it comparable to a bond issuance.

On state reimbursement, the presenter said the district will not lose its PlanCon reimbursement on the refunded portion of the 2017 Double‑A bonds. “You do not,” the finance presenter said, referring to the PlanCon dollars; staff added that they will complete the PlanCon Part K filing after settlement to transfer the reimbursement from the refunded 2017 bonds to the new General Obligation (G.O.) notes series of 2025. The presenter noted that the business office must file the Part K because it requires a signature on the KO‑1 form and warned that PlanCon processing may be slower because the state reviewer recently changed positions.

The presenter provided the following items from the meeting packet: the total principal restructured ($16,231,000); the cost of restructuring listed in the packet as $3,372,874 (present-value cost shown as $297,180); and a semiannual breakout of new principal and interest for budget planning. Committee members asked clarifying questions about how state aid and local effort were shown in the packet; staff explained that the packet labels the old PlanCon reimbursement as “state aid” and that local effort equals principal plus interest minus any PlanCon reimbursement.

Action: The committee voted to move forward with concurrence to the full board on the JPMorgan Chase loan option; committee members recorded their assent by voice (“Aye”). Staff said the board will receive the presentation and a final concurrence request. The presenter reiterated that closing costs for the bank loan were lower than the comparable bond market alternative and that the team compared true interest cost when evaluating options.

Ending: Next steps include the Aug. 29 settlement, completion and business‑office filing of PlanCon Part K after settlement, and formal board concurrence on the committee’s action. Staff noted a potential processing delay for PlanCon paperwork because of staffing changes at the state review office.