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Papillion-La Vista board approves resolution to issue up to $55 million in school bonds
Summary
At its May 12 meeting the Papillion-La Vista Board of Education approved a resolution authorizing up to $55 million in general obligation bonds to continue projects from the 2023 bond election, and staff said the district will pursue market pricing immediately.
The Papillion-La Vista Community Schools Board of Education voted May 12 to approve a resolution authorizing the issuance of up to $55,000,000 in general obligation school building bonds to continue the construction schedule from the 2023 bond election.
The authorization, moved by Mr. Madler and seconded by Mr. Lotus, passed on a roll-call vote recorded during the meeting. District financial advisers said the district was positioned to go to market immediately and that current market conditions could reduce borrowing costs.
Brett Richards, who introduced the item, asked Cody Wickham of the underwriting firm DA Davidson to brief the board on market conditions and timing. Wickham said the district had completed ratings calls and documentation and planned to use preliminary pricing the day after the meeting with an order period scheduled for the following Wednesday. "We're going out really, really strong and aggressive," Wickham said, noting the team expected to go to market immediately.
Wickham supplied a concrete sensitivity example: every 10 basis points of interest-rate change equals about $914,000 in interest expense for the district. He said comparable recent sales produced pricing anywhere from 38 to 46 basis points tighter than current references and estimated that executing at those levels could translate to roughly $2.7 million in interest-cost difference over the debt service, depending on final pricing and call provisions. Wickham also noted the district’s 10-year call provision versus a 5-year call for some comparators — a feature that affects pricing.
Board members asked procedural and market questions; Richards said the financing team would report back on execution and final pricing after the sale. The resolution authorizes the district to proceed with the bond issuance but does not commit the district to a specific sale until final pricing is presented to the district.
The board did not modify the bond-authorization amount. The motion was recorded as approved by roll call.
