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CMSD board authorizes up to $100 million in bonds to fund facilities projects
Summary
The board authorized the issuance and sale of up to $100 million in bonds — part of a voter-approved program — to fund district construction, renovation and priority maintenance projects; one board member abstained.
The Cleveland Municipal School District Board of Education approved a resolution authorizing the issuance and sale of up to $100 million in bonds as part of the voter-approved Issue 49 program.
The transaction will fund a portion of district construction, renovation, furnishing and site work; district staff and bond counsel said bond proceeds are held in a legally separate fund and are issued in multiple transactions as cash is needed. The district reported that voters approved Issue 49 in November 2024, which authorized up to $295 million in bonds for district projects.
District staff said the board’s approval authorizes the transaction but does not commit the board to specific projects at this time. Project prioritization and individual project approvals will be presented to the board in future work resolutions and in OFCC project agreements for segments 8 and 9. District financial staff said current estimates show about $18 million in cash in the fund and an anticipated near-term issuance of roughly $75 million to meet immediate project timelines.
RBC Capital Markets, Baker Tilly (municipal advisor) and Squire Patton Boggs (bond counsel) were named as the teams to handle issuance after a competitive selection process; the district said those firms have previously worked on successful district bond issuances and refundings.
Board members asked about rating calls and credit enhancement. Staff said rating presentations were scheduled and that participation in the state credit enhancement program could improve the district’s effective rating because of the state backing. During the roll call vote the motion carried with six votes in favor and one abstention; one board member, Mrs. Welch Howe, said she would abstain because of a possible employer conflict of interest.
The district said it will return to the board with annual work resolutions specifying which projects will be funded out of bond proceeds and with OFCC project-agreement amendments as required by state rules. OFCC will require cash on hand before signing certain project agreements, staff said.
