Moorhead board approves $1.57 million certificates sale and backs bill to allow internal fund transfers

The Moorhead Area Public Schools Board of Education on April 14 voted to authorize the issuance of Certificates of Participation (Series 2025A) in a maximum principal amount of approximately $1,570,000 to finance outdoor education facilities, and separately approved a resolution supporting House File 957 to permit limited internal transfers of district funds for fiscal years 2025 through 2029.

The issuance resolution, presented by Beth Downs of Ehlers, described the offering as a lease-levy backed financing distinct from the district’s general obligation school building bonds. "I am here to talk about your certificates of participation that you'll be issuing to finance some outdoor education facilities, including turf softball fields," Downs told the board. The presale report in the board packet shows a par amount of $1,570,000, an estimated reoffering premium of about $73,000, and an estimated deposit to the project construction fund of just under $1,500,000. Downs said the bonds were being marketed with coupon rates in the mid-4% range (approximately 4.5%) and that the first interest payment is expected in April 2026; that initial interest payment of about $58,000 will be funded through the financing.

The board also approved a parameters resolution to allow the superintendent and a designated board member to finalize the sale so long as the true interest cost remained under 5 percent. Downs said the parameters approach was requested because of market volatility: "We want to make sure if we go to sale day and interest rates do not come out the way we want, we don't want you tied into that. We want to make sure that we could resell on a different date if we needed to." The motion to approve the district's intent to issue the certificates was made and seconded by board members; the board approved the resolution by voice vote and the motion carried.

Separately, the board voted to support House File 957, a bill that would allow school boards limited authority to transfer money between certain district funds for a set period. Christine Berg of Education Moorhead described the process that led to the local resolution: "We met as a meet-confer committee, and then we brought it to cabinet," she said, and noted cabinet members contacted legislators for clarification while drafting the district’s support letter. Administration explained the bill would permit up to five fund transfers beginning in fiscal 2025 and concluding in fiscal 2029, unless further legislation extended the authority.

Board discussion clarified how the transfers would be used and limited. Administration recommended using the transfers once per year, timed with the annual audit, and cautioned against repeated transfers that could risk essential programs. "My recommendation is that we would do it one time a year per fund," administration said, noting the likely focus would be on certain funds (examples given in discussion included the district’s long-term facilities maintenance fund and other non-general funds). A board motion to approve support for granting the school board authority to transfer funds internally for fiscal years 2025–2029 (as described in House File 957, section 1) was approved by voice vote and the motion carried.

Votes at a glance - Resolution: Intent to issue Certificates of Participation, Series 2025A, maximum aggregate principal amount approximately $1,570,000 — Approved (motion, voice vote; no recorded tally in meeting transcript). Key details: estimated reoffering premium ~$73,000; coupon rates marketed in the mid-4% range; first interest payment estimated April 2026 (~$58,000). Parameters resolution authorizes final sale if true interest cost < 5%. - Resolution: Support for House File 957 (authority to transfer funds internally, FY2025–2029, section 1) — Approved (motion, voice vote; no recorded tally in meeting transcript). Key details: limited to five transfers during FY25–FY29; administration recommended one transfer per fund per year timed with audit; intended to allow shifting available dollars to classroom needs while protecting minimum balances.

What this means next Staff will proceed with the steps required to market and, if terms are acceptable under the parameters resolution, issue the certificates next month; administration will send the district’s resolution of support for House File 957 to local legislators ahead of conference committee action. The board packet includes the full presale report, the parameters resolution text, and the draft support letter for HF 957.