Board approves amendment to 2017 taxable loan, expands line to $250 million for school-building financing

The Harmony Public Schools board on May 17 approved a resolution authorizing an amendment to a 2017 taxable loan from Regions Commercial Equipment Finance LLC that will qualify the loan as master debt under the district’s master trust indenture and security agreement.

District finance staff described the amendment as increasing an existing line of credit to $250 million — a size the presenter characterized as “a first in nationwide for charter school to be eligible for this large type of credit.” Staff said the line is restricted to financing school facilities and cannot be used for working capital. They also said the facility line previously stood at $200 million and that the district has, in the past, carried a minimum balance provision related to the line (presenter referenced a $150,000,000 figure in the discussion).

Board members asked for historical context, including the last time a line of credit of similar size was approved and how many schools were in the network at that time; staff replied that a comparable closing amount was approved about two years earlier. A board member asked how the line would interact with bond issuance; a staff member explained that the line would typically be refinanced when a bond is issued.

A board member moved to approve the resolution authorizing the amendment; a second was recorded and the motion passed on a voice vote.

District staff said the amendment will allow the board and administration to finance new school construction consistent with the master trust indenture and will require subsequent financing steps (including bond issuance) to refinance any outstanding balance.