The finance committee recommended placing a bond parameters resolution on the Jan. 23 action agenda that would authorize borrowing up to $15,000,000 to help fund Phase 1 of the district's high-school renovation project. The motion to place the parameters resolution on the Jan. 23 action meeting passed unanimously.

District financial advisers (PFM) presented three scenarios for potential 2025 borrowing: borrow $15 million, borrow $10 million, or borrow nothing this year and use reserves. PFM's analysis compared (1) interest the district would earn on invested borrowed proceeds while draws are made, (2) debt-service payments that would begin if debt is issued in 2025, and (3) interest income the district would earn by retaining capital reserves rather than spending them immediately.

PFM explained two technical thresholds that informed the scenarios: a $15 million-per-calendar-year threshold relevant to small-issuer arbitrage rebate treatment, and a $10 million-per-calendar-year threshold for bank-qualified status (which can produce lower rates and shorter call features). The advisers concluded there is little pure dollars-and-cents benefit to borrowing now versus later under current assumptions, but that modest borrowing could preserve reserves and help maintain the district's AA1 bond rating with Moody's. A one-notch downgrade (AA1 to AA2) was estimated to increase borrowing costs materially (~$4 million over the project under current assumptions), so credit-rating strategy weighed heavily in the recommendation.

The committee discussed market timing, expected draw schedule for Phase 1 (roughly $20 million in 2025 of the $29 million Phase-1 estimate), the district's committed $49 million capital reserve and $22.5 million unassigned fund balance, and the plan to seek Moody's review (including a site visit) before larger future borrowings. Several committee members expressed a preference for the $10 million scenario (bank-qualified) for flexibility; some favored the $15 million cap to preserve optionality. The parameters resolution authorizes up to $15 million; staff said adopting the parameters resolution does not require immediate borrowing and that a later addendum would set any final borrowing amount.

A motion to place the parameters resolution (authorization up to $15,000,000) on the Jan. 23 action meeting passed (motion by Mr. McBain; second by Mr. Fusco; "Aye," motion carries). Bond counsel explained the parameters process: the district files with the Department of Community and Economic Development (DCED), advertising and DCED review typically takes 30'40 days, and no borrowing occurs until a later board-signed addendum to the bond-purchase documents sets the final amount.