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Board authorizes sale of $39 million in GO school building bonds to fund first phase of high school project
Summary
Board approved a resolution to issue $39 million in general obligation school building bonds (Series 2025A) as the first phase of a two‑part financing for the Northfield High School construction project; bids will be taken Feb. 24 and proceeds available March 20.
The Northfield Public School Board on Jan. 27 adopted a resolution to issue $39,000,000 in general obligation school building bonds, series 2025A, for the first phase of the district’s approved high school construction program.
Jeff Seeley of Ehlers Inc., the district’s municipal advisor, presented the sale-day report and financing structure. He said the $39 million bond is the first of two planned issuances (the second is estimated at roughly $80,080,000 and expected in spring 2027). The first issuance will provide cash for construction through summer 2027, Seeley said. The bonds carry a 23‑year term for this series and are callable beginning Feb. 2033; when combined with the second issuance the total term will be roughly 30 years.
Seeley said the district plans a competitive national bid for the bonds on Feb. 24; Standard & Poor’s will provide a credit-enhanced rating (AAA with state credit enhancement) and an underlying AA+ rating is anticipated. Proceeds are expected to be available March 20. The issued debt will be paid through a property tax levy already levied in December to cover the first payment, Seeley noted; any future levy impact will be set when the second issuance is structured.
The board’s resolution approved the issuance and sale. The motion was seconded by a board member identified in the record as Corey. Board secretary Kelly conducted a roll-call vote during the meeting; the transcript recorded the following affirmative votes by name: Miller (Aye), Nelson (Aye), Cornell (Aye) and Gonzalez George (Aye). The chair announced the resolution passed.
Legal and administrative support named in the presentation included Dorsey & Whitney (bond counsel) and U.S. Bank Trust (paying agent); the sale-day report and related documents were part of the board’s packet and the district’s municipal advisor supplied the financing schedule and tax-rate projections.
Board members asked about the interest-rate assumption used in planning (Seeley said about a 4.4% estimate with some cushion; final rates will be locked when bids are awarded on Feb. 24). Seeley also described the state credit-enhancement program that should reduce the interest rate and improve rating outcomes, subject to the rating agency’s review.
The resolution authorizing the sale passed and the district will proceed to advertise and accept bids on Feb. 24 with anticipated proceeds on March 20.
