Trustees approve $40 million from 2017 bond earnings to prioritize Saginaw High athletics upgrades

The Eagle Mountain-Saginaw Independent School District Board of Trustees voted 7-0 on April 28 to use $32 million in investment earnings from the district’s February 2017 bond issuance and $8 million in project savings to prioritize athletics upgrades at Saginaw High School, including renovations, a multipurpose facility and campus agriculture classrooms.

Board members said the money must be used for capital projects allowed under the 2017 bond language. “Must be spent on capital improvement projects approved by the voters for building and equipment equipping school facilities,” Clete Welch, the district’s operations lead, told the board during the staff presentation.

The money stems from higher interest rates and unspent contingencies tied to the 2017 bond program. Welch reported that interest earnings on the 2017 issuance had grown to about $32 million by April 2025 and that additional construction savings added roughly $8 million, giving a near-term funding pool of about $40 million. Welch also noted an earlier $10 million allocation originally designated for SACOM athletics, bringing the total funding available for athletics-related work to about $50 million if that prior allocation is included.

The board’s action follows a recommendation from the district’s Long Range Facility Planning Committee, which reviewed candidate projects and advised prioritizing Saginaw High School athletics work to bring that campus closer to the district’s facility standard. Welch said the district’s bond counsel reviewed allowable uses and advised the board that the funds could be spent on school facility projects consistent with the bond proposition language.

Trustee Tim Daughtry moved the motion; a board member identified as Steve seconded it. The board clerk announced the tally as 7–0 in favor of the allocation.

The district and board discussed timing and scope during the meeting. Welch told trustees that the district must spend the bond-related earnings soon to avoid potential federal arbitrage penalties if funds are held long term. He recommended getting a construction contract in place before allocating remaining funds to other projects so the board would know exact costs. Welch said the Saginaw project could include improvements to locker rooms, training rooms, upgrades to campus standards and replacement or relocation of agriculture facilities as needed.

What the board approved is an allocation of funding; detailed project plans, contracts and schedules will be developed by staff and returned to the board for contract awards and construction oversight.

The board also directed staff to continue work with architects and construction managers to refine scope, costs and timing and to return with implementation details for the approved priorities.