Committee reconfirms plan to borrow $10 million for 2025 high‑school project phase; parameters resolution sets $15 million ceiling
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Summary
Finance staff reviewed three borrowing scenarios and the committee reaffirmed a plan to borrow $10 million in 2025 for the first draw of the high‑school construction project; a parameters resolution on the work session sets a $15 million ceiling that will not necessarily be borrowed in full
Finance staff reviewed financing scenarios for the first construction draw of the high‑school project and the committee confirmed earlier consensus to borrow $10 million in calendar year 2025.
The administration presented three options for 2025 draws: do not borrow, borrow $15 million, or borrow $10 million. Staff said the $10 million scenario was the most financially advantageous of the three. The committee noted a parameters resolution on the work session that sets a borrowing ceiling of $15 million; staff said that ceiling does not require borrowing the full amount and that the $10 million target will guide financing advisors and the ratings call with Moody’s scheduled for Feb. 19.
Why it matters: Administration advised that a bank‑qualified bond (under $10 million) typically yields preferential rates and that timing of draws and phasing affect interest cost. Committee members indicated support for the $10 million plan and asked the administration to proceed with documents, the ratings call and lender outreach; no final bond sale occurred at the committee meeting.
Ending: Staff will proceed with standard financing steps, present final parameters at the action meeting and return to the committee with firm borrowing terms before closing.