Board discusses seeking up to $37M in debt certificates, $55M bond plan to follow; tax impact estimates presented

Superintendent Andrew Johnson and staff reviewed a proposed two-step financing approach for district capital projects at the April board meeting: first, seek general-obligation debt certificates not to exceed $37 million as a short-term bridge; second, pursue working-cash bonds (board discussed up to $55 million) at a later date if the board elects to proceed.

Johnson said the debt certificates would position the district to begin early project work and then return to market for bonds later in the timeline. He told the board that local banks have expressed interest in purchasing the certificates and that a transaction could be structured so a single bank that underwrites the certificates would receive the interim deposit.

On possible tax impacts, Johnson and advisers provided a conservative estimate: a full $55 million bond package could raise the tax rate by an estimated 13% in the first year under a conservative 3% growth assumption in equalized assessed value; Johnson also referenced a separate, illustrative 30-cent-per-$100 estimate discussed in the analysis. The exact taxpayer effect depends on future property valuation growth and any future revenue measures such as a local 1% sales tax, which board members asked about.

Board members did not vote on issuing debt certificates at the meeting; the item was presented for discussion. Johnson said the district intends to present a bond resolution at the May 19 board meeting if the board wants to proceed. The board also discussed the option of phasing borrowing — taking a smaller amount up front and issuing further debt later as spending needs arise.

No financing agreement was executed at the meeting; staff will bring formal resolutions and more detailed pay‑down schedules for board consideration.