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Adviser outlines plan to ask voters for $75 million bond; district says tax rate would not increase
Summary
RBC Capital Markets presented a multi‑year financing plan recommending up to $75 million in general obligation bonds for a November election, along with education technology notes; timeline and local tax impacts were discussed.
An external bond adviser told the Gadsden Independent Schools Board of Education the district’s growing tax base supports asking voters this November to authorize up to $75 million in general obligation bonds, to be sold over four years, while maintaining the district’s existing tax rate.
The item matters because voter approval would provide capital funds for district projects; the adviser said the district’s tax base growth and rapid debt retirement increase bonding capacity, and recent state constitutional amendments expanding veterans’ property tax exemptions will slightly reduce the net taxable value.
Eric Harrigan of RBC Capital Markets told the board the district last went to voters in November 2021, when voters authorized up to $38 million; the last issuance under that authorization is estimated at about $9.5 million this year. In addition to the general obligation bonds, the district would issue roughly $3 million in education technology notes. Harrigan recommended a November ballot question for $75 million to be issued over four years and said the district would not need to extend its 2‑mill levy at this time.
Harrigan also warned that two constitutional amendments approved by voters last November expand veteran property tax exemptions and could reduce net taxable value by about $40 million (roughly 3% of a tax base described as “a little over a billion dollars”). He said the district is “about 40% bridled to capacity” in its current debt profile, meaning the growth supports the proposed ask.
On timing, Harrigan recommended the board approve an election resolution in June, authorize issuance in August, and close bonds in October so funds would be available for projects before year‑end. Board members asked for materials they could share with the public; Harrigan said staff and the adviser would prepare a flyer explaining that the question would maintain the district’s existing tax rate and provide it within the next month or two.
No formal vote on the bond question occurred at the meeting; the presentation was a planning discussion and the board will return to the topic at upcoming meetings.
