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Board approves short-term note plan to bridge construction contracts; district to issue long-term bonds later
Summary
The Bedford Board of Education voted to authorize short-term notes not to exceed $95 million to bridge construction certifications while the district prepares a larger bond sale, district finance advisers said during a work session.
The Bedford Board of Education voted unanimously to authorize the issuance of short-term notes not to exceed $95,000,000 to cover contract certifications for the district’s school construction program, presenters said at the board’s work session.
The resolution clears the way for the district to borrow now and set permanent interest rates later. District finance advisers told the board they plan to print a preliminary offering document immediately, market the notes to investors, price and sell the note issue on March 5, 2025, and carry the six-month note to a planned $158 million long-term bond sale later in the year.
Why it matters: The temporary borrowing will allow contract work to proceed while the district completes audit and bond-preparation steps that delayed an earlier long-term sale. Presenters said the Ohio Market Access Program (OMAP) has certified the district for the larger-than-usual $95 million note request and that they plan to pursue bond insurance to attract investors because the district did not obtain an underlying rating from the major rating agencies.
Underwriter Austin McClendon of Piper Sandler, who spoke for the financing team, said the current plan is to price the notes next Wednesday and that the notes will mature Sept. 4, 2025, giving staff time to issue the long-term bonds three months into the six-month note maturity window. A district finance presenter called Michael said the team had negotiated initial reductions in estimated insurer costs and was traveling to New York to pursue further savings.
Board members asked about costs to taxpayers and how the timing interacts with the voter-approved levy. Presenters said the district will invest the temporary proceeds in very low-risk accounts (Star Ohio) and expects roughly $2.5 million in additional investment earnings that could be used as a buffer for value engineering or other project needs. The presenters also said bond insurance would carry a premium (they discussed a 35–40 basis‑point range as an estimate) and that insurance and other issuance costs are treated as part of the bond issuance and financed within the issue rather than paid directly out of district operating funds.
The board approved two finance-related agenda items during the meeting: a fiscal officer certificate (which verifies the district’s capacity to issue the notes) and the note-resolution authorizing the sale. Both passed on recorded roll calls with votes of 4–0.
Presenters and next steps: Austin McClendon (Piper Sandler) and the district’s finance advisers said they will circulate the offering document to investors, set interest rates at pricing, and return to the board with the final bond-pricing plan before permanently fixing rates. The treasurer’s office and district staff will bring a proposed investment policy and a presentation of expected millage impacts for board review prior to the bond sale.
The district’s presenters repeatedly stressed that the note is a short‑term bridge mechanism and that the long‑term bond sale will be structured to stay within the voter-approved 9.9 mills. They also emphasized contingency options if cost estimates exceed the current plan: value engineering, scope reductions, or identifying additional funding.
