The Fridley Public Schools Board of Education on Oct. 7 authorized district leaders to pursue a refunding (refinancing) of general obligation school building and alternative facilities bonds, series 2026A, aiming to lower interest costs for taxpayers.

Superintendent Dr. Lewis introduced the topic and invited financial advisor Matthew Hammer of Ehlers to explain. Hammer said the district has two groups of callable bonds — one from voter-approved 2016 issues and earlier bonds that had been refunded in 2016 — that reach their call dates and present an opportunity to refinance at lower rates. “Based on current market conditions, we're anticipating we're gonna be able to save between 4 and $500,000 of interest cost,” Hammer said. He described the savings as statutory: any refinancing savings must reduce future debt service levies.

The board heard that the district plans to close any refinancing after Jan. 1, 2026, so the district retains an “arbitrage” benefit tied to proceeds from bonds issued earlier in 2025. Hammer said staff expect to negotiate with underwriter DA Davidson and to use a credit-enhanced structure rather than a full underlying rating, which the advisors expect will provide flexibility in timing and cost. The district and advisors said the targeted maturities run through 2030–2031.

Board members asked few questions. The board then considered and approved a resolution authorizing the refunding plan. Director Sarah Jones made the motion to adopt the resolution; Director Meissner seconded. A roll-call vote recorded unanimous approval by the board members present.

District staff said a market sale could occur as early as December 2025 but may move into early 2026; any levy reduction would be reflected in taxes payable 2027 rather than 2026. Officials said they will work with Assistant Superintendent Rochelle Cox and district finance staff to refine timing and to maximize savings.

The board’s action grants staff authority to advance structuring and sale activities but does not itself close a transaction or set final sale terms. Staff indicated they will return with further details and timing as plans solidify.