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Board approves $6 million bond; Zions Bank bid selected to fund Lowry High School HVAC and other projects
Summary
Trustees approved a resolution authorizing up to $6 million in general-obligation school improvement bonds and delegated authority to the superintendent to accept Zions Bank's 4.8% bid; funds are targeted to Lowry High School HVAC phases, a track reconstruction and other campus repairs.
The Humboldt County School District Board of Trustees on March 24 authorized a $6,000,000 general obligation limited-tax school improvement bond (Series 2025), delegating to the superintendent the authority to accept the winning bid and sign closing documents.
Marty Johnson, financial advisor to the district, told trustees Zions Bank offered the most favorable proposal at a 4.8% interest rate for the first 10 years, with a rate reset for the final five years. Johnson said the district would pay about $2,405,000 in interest if the financing goes the full 15 years. He said two other bidders returned higher offers: one at 4.95% and Capital One Public Finance at 5.19%.
The board heard the bond described as necessary to accelerate planned capital work, including phase 2 and 3 of Lowry High School's HVAC project (pre-bid walk March 26; bids due April 17) and a proposed Lowry track reconstruction estimated at approximately $400,000. Superintendent Dr. Jensen said the track work would use a portion of the funds discussed for the Lowry HVAC project so both could proceed as bids are received.
Johnson reviewed the prior steps: the district sought approval from the State Debt Management Commission earlier this year for up to $13 million of bonding capacity, prepared a request-for-bids package, and solicited banks. He recommended accepting the Zions Bank bid and said the transaction was expected to close on April 16, at which point the district would receive the bond proceeds.
Trustees asked staff to correct a clerical date in the resolution language before execution; a motion to adopt the resolution with that clarification passed with all present voting in favor.
In other facility notes, Dr. Jensen said the district has released bid documents for the next phases of the Lowry HVAC project and is reviewing bids for other work including a planned sanding and refinishing of the Lowry gym floor this June and evaluation of stair repairs. He also thanked Nevada Gold Mines for continuing grant support and said the district will conduct its final Nevada Gold Mines mini-grant review on April 1.
Why it matters: The bond authorization gives the district immediate financing capacity to start or accelerate specific capital projects at Lowry High School and other facilities once bids are accepted and documents closed. Trustees said they expect staff to return with execution-ready documents and to report back as projects advance.
