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Board reviews construction fund budget for Reimagine Northfield High School; project cost estimated at $121.6 million
Summary
At the May 27 meeting the board reviewed the construction fund for the Reimagine Northfield High School project, including bond sales, a $2 million pledge from Carlton, projected interest earnings, a required 5% retention on contractor invoices, and a multi-year draw schedule; the item will return for action on June 9.
The Northfield School Board received a briefing on the construction fund for the Reimagine Northfield High School project on May 27, as the district works to track bond proceeds, project expenditures and scheduling ahead of future work and planned bond sales.
Val (district finance staff) said the construction fund is “a completely separate fund that tracks all of the bond funding that comes in and all the construction and related expenditures for the Reimagine Northfield High School projects.” The board approved a successful bond referendum in November; the district sold the first series of bonds in February and plans to sell the remainder in 2027, depending on construction timing.
Project-cost estimates presented to the board list three referendum questions: a multistory classroom addition and related renovations (about $95.8 million), an expanded gymnasium addition ($18.7 million) and a geothermal system ($7.0 million), for an overall projected cost of about $121.6 million. The district reported it has received a $2 million pledge from Carlton and already received the first $1 million of that pledge, which reduced the size of the initial bond sale.
Val said interest-earnings projections have outperformed the pre-election estimate; the district’s current projection is about $4 million in interest earnings compared with a pre-election estimate of about $1.97 million. The finance presentation also reviewed the project draw schedule prepared with the architect and construction manager and noted the district is required to retain 5% of gross billed work until project certification to cover potential deficiencies.
Funding and spending for the construction fund will be presented again as an action item at the June 9 board meeting. Val described the 2025–26 projection as the period when construction payments will increase, and estimated net billings of about $12.8 million for 2025–26, with an ending fund balance of roughly $27.4 million carried into 2027 before the next bond sale.
No formal action was taken on May 27; the presentation was informational with questions from board members about the draw schedule and cash-management details.
