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District staff and AMCO present refinancing option through state SCARLET program; board authorizes application
Summary
A remote presentation from AMCO adviser Brian Ossowski outlined the state SCARLET refinancing program as a possible source to refinance callable school construction bonds; the board approved a consent-agenda authorization to submit an application to the program.
Brian Ossowski, representing AMCO via videoconference, told the Williston Basin School District No. 7 board on Jan. 8 that the state’s SCARLET program (as described in his presentation) could provide funding to refinance callable bonds issued for past school construction at an interest rate of 2% for the remaining life of the bond.
Ossowski said his estimate of program activity is roughly $31 million to $33 million per year statewide and recommended that the district consider applying to refinance a set of publicly issued bonds from 2014–2017 that are currently callable. He showed potential savings scenarios and said issuance costs for SCARLET refinancing would be minimal, likely limited to a small attorney fee.
District business staff presented the regular monthly financial report for the period ending Nov. 30. The staff said revenues and expenditures were on track, more tax receipts were expected in December and that account reconciliations were up to date. The business office reported work with First International for investment transfers and said they have identified outstanding older checks to clear from the ledger.
At the board’s consent-agenda vote later in the meeting, the board approved the consent item that authorizes district staff to submit an application to the SCARLET program for refinancing of callable bonds. Staff clarified to the board during the consent-item discussion that the authorization is to apply; a later board decision would be required to accept an award and to change levy or payment schedules.
Board members asked about issuance costs and whether being awarded SCARLET dollars would obligate the district to accept them; staff and Ossowski said award does not compel acceptance and that costs to apply or issue under the program would be minor.
