Superintendent says district will sell $15 million in bonds as CFO readies budget; AAA rating noted
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Summary
Superintendent Brown told the board the district plans to go to market next week to sell $15 million in bonds, said the bonds were rated AAA, and warned that an increase in the I&S rate may be recommended even as total tax rate is expected to remain the same due to state compression and a $40,000 homestead exemption change.
Superintendent Brown told the board the district plans to sell $15 million in bonds next week after delaying the sale for two years to seek better market conditions.
"Our bonds have been rated AAA," Brown said. He said the district's financial adviser recommended selling now despite volatile markets, and that the pricing is scheduled to be released next Monday.
Brown said the district is preparing for August budget work and that he anticipates recommending a slightly higher interest and sinking (I&S) tax rate to account for market volatility. "Taxes are not going up," Brown said, adding that state compression and a $40,000 additional homestead exemption being implemented by the state should keep the district—s overall tax rate stable and that many taxpayers could see lower bills because of the homestead change.
Brown also described the complex environment the district faces in building the 2024-25 budget: federal funds are being cut, state allocations include an $8,000 teacher raise that does not automatically apply to all district personnel, and the CFO is working on options to extend local pay adjustments to counselors, nurses, librarians and noncertified staff. Brown said final recommendations will be brought to the board in August.
Brown said Britney, the district CFO, will present more detailed bond and budget information at the next meeting.