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Council authorizes pre‑issuance spending up to $28.5 million for second high school; debt service set to school millage
Summary
The council approved a resolution allowing the city to make expenditures for design and construction of a second high school up to about $28.5 million before issuing bonds; officials said the city will reimburse those expenses with later debt issuance and that debt service will be paid from the school district's 16‑mill property tax.
On Feb. 4 the Auburn City Council authorized the city to incur expenditures, and later reimburse them through one or more series of tax‑exempt general obligation bonds or warrants, for capital improvements related to a planned second high school. The principal amount was stated as not to exceed approximately $28,500,000.
City staff explained that the city will incur design and early construction costs now and reimburse those costs after debt is issued. Council members sought and received clarification that the city itself will not shoulder the school district’s debt service; staff and elected officials said debt repayment will be funded from the Auburn City Schools’ dedicated 16‑mill property tax. One council member summarized the arrangement: the city issues the debt but the 16‑mill tax revenue set aside for Auburn City Schools will pay the debt service.
Council voted to approve the pre‑issuance spending authorization. No additional spending allocations or bond resolutions were adopted at this meeting; the authorization allows the project team to proceed with design and procurement steps that will later be financed by formally issued debt.
Ending: Staff and the school district will proceed with the project planning and early‑phase expenditures under the approved pre‑issuance authorization; bond issuance and exact financing terms will be set at a future meeting when market conditions and final project costs are known.
