Board accepts sealed bids, approves sale of $13.2 million general-obligation bonds to UBS

The Indianola Community School District Board of Education voted unanimously Sept. 8 to accept sealed bids and approve the sale of $13,200,000 in general-obligation school bonds to UBS Financial Services.

The action follows a competitive sale earlier that day in which board advisors reported seven bids and a narrow spread among the top proposals. The board approved a separate resolution authorizing the sale of general-obligation school bonds, series 2025, with a not-to-exceed amount of $28,440,000 for the series; the motion to approve UBS as the winning bidder carried 7 to 0 on a roll call vote.

Board members and the district’s municipal advisor said the sale produced favorable interest-cost results compared with recent financings. The municipal advisor noted the district received competitive bids with winning yields near the top of the market range and said the sale timing worked in the district’s favor as interest rates moved slightly lower since the financing plan was developed. The board was also told the district’s credit review with Moody’s during the process produced an upgraded view of the district’s credit profile.

The board heard the financing plan would structure the new GO bonds on a roughly 20-year schedule, with final payment in 2045 and a plan that anticipates future issuances through about 2029. Advisors said the district sized the sale for fiscal-year 2026 levy constraints and to provide funds for phase 1 of construction projects. The sale will close Sept. 30, when bond proceeds are expected to be available to the district.

The municipal advisor described the winning bid from UBS as having an average interest-cost figure in the mid-4 percent range; other finalist proposals clustered within a few basis points. Board members were shown the financing model and told the district will continue to monitor interest rates and property valuation growth before future issuances. The advisor also explained the bonds are being issued as a small-issuer exempt financing, which gives the district up to three years to spend proceeds without rebate restrictions.

Board President Tim Mills moved to accept the sealed bids and to approve the sale resolution; Ben Metzger seconded for the sealed-bid acceptance motion and the sale motion was seconded by Ben Metzger. The roll call on the sale carried 7 to 0.

The board packet included details on the expected project funds (roughly $27.4 million currently estimated) and on remaining voter-authorized GO bond capacity. Advisors said about $22.1 million of GO authority remained for future phases and that sales-tax-backed borrowing of about $29.8 million is expected later this year as a separate tranche.

District staff and advisors said the board will return to approve final issuance documents next week and that closing remains set for Sept. 30.