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Board approves up to $17 million in one‑year bonds to fund capital and energy projects
Summary
The Richland 1 board voted unanimously to authorize general obligation bonds not to exceed $17 million to fund IT upgrades, energy‑savings work and other capital items; bond advisors projected interest in the mid‑3% range and a state intercept rating was discussed.
The Richland 1 School Board on March 25 approved a bond resolution to issue general obligation bonds not to exceed $17,000,000, to finance capital projects including information‑technology upgrades, energy‑savings measures and construction. The motion passed unanimously.
Why it matters: Bond proceeds will fund capital improvements and a final year of a three‑year energy‑savings project; administrators said there will be no tax increase to Richland 1 taxpayers next year related to the issuance.
Key details presented
- Amount and purpose: Finance staff presented the resolution “to issue and sell general obligation bonds not to exceed 17,000,000,” and said proceeds will fund IT upgrades, energy savings improvements, equipment, construction and other capital items. About $2,000,000 of the proceeds will finance the final year of an existing energy‑savings project.
- Timing and repayment: Administration materials stated the bonds will be fully paid by March 1, 2026; the brief presentation described the issuance as a short‑term borrowing plan tied to planned paydown next year.
- Rates and ratings: Board members asked the district financial adviser about current market rates. The adviser said recent runs showed rates "in the 3.4 to 3.75" percent range. He also noted a state intercept rating that would give a double‑A1 on the bonds and referenced the district rating roughly at double‑A3.
Board action
Commissioner Devine moved to approve the bond resolution; the motion was seconded and carried unanimously.
Ending
District staff said the item had been reviewed in board committees before the vote and recommended the authorization to allow the district to proceed with sale and project financing.
