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Board hires PMA Securities as municipal adviser; advisers outline refunding and new‑money strategy tied to lease certificates
Summary
The board approved PMA Securities to advise on debt issuance and refunding. PMA presented options to refinance 2014/2015 capital appreciation bonds, use non‑referendum bond authority to meet lease certificate payments, and timelines aligned to a Feb. 28 levy deadline.
The board voted Jan. 13 to retain PMA Securities as the district’s municipal adviser to assist with debt issuance and refunding. The authorization passed by roll call.
PMA senior vice president Bob Lewis reviewed the district’s debt profile, explained the debt‑service extension base (the tax‑cap‑law measure that limits non‑referendum debt service) and described refunding opportunities for older capital‑appreciation bonds that are callable in the coming months. Lewis said two series (notably 2014 and 2015 capital appreciation bonds) present refunding opportunities that could reduce interest costs but will require careful timing to remain tax‑exempt (refundings must close within 90 days of the call date to preserve tax‑exempt status).
Lewis and district staff also proposed using up to a portion of the district’s existing non‑referendum bond authority (roughly $3.425 million available from prior proceedings) to make required lease‑certificate payments in 2025 (June 1 interest and December 1 principal/interest). PMA gave a recommended two‑step plan: a small March 2025 sale (potential direct placement) to cover the June 1 interest and then a larger public sale in late summer to cover the December obligations and to refinance callable bonds; PMA noted a Feb. 28 filing deadline for any sale to appear on the 2024 levy.
Why it matters District presenters said the plan is intended to preserve the district’s debt‑service levy stability and avoid an otherwise projected decline in levy‑covered payments that would raise the calculated tax impact for a median home. PMA noted alternative approaches would raise taxable borrowing costs by an estimated $375,000 (if timing forced taxable issuance for part of the requirement).
Vote The board approved PMA Securities as municipal adviser by recorded roll call (affirmative votes recorded by Salem, Sue, Gilpin, Lindsey Ryan, Kim, Wilkins and Hernandez). PMA counsel and district finance staff will proceed with the recommended timing if the board confirms related financing steps in future meetings.
