Decatur board authorizes $52M bond sale, pledges district backing for early childhood center and high school work

City Schools of Decatur’s Board of Education on Oct. 14 approved an intergovernmental agreement of sale with the City of Decatur Public Facilities Authority that clears the way for the Public Facilities Authority to issue revenue bonds to finance a new Early Childhood Learning Center (ECLC), renovations at Decatur High School and a possible refunding of certain 2014 certificates of participation.

Under the agreement the district will pledge its full faith and credit up to the statutory millage cap to secure the bonds; the district intends to repay the bonds primarily with Special Purpose Local Option Sales Tax (SPLOST) proceeds and other lawful district revenues. The bond parameters approved by the board set a not-to-exceed principal of $52 million (roughly $36.5 million new-money for capital projects plus contingency and potential refunding) and a not-to-exceed interest/coupon parameter used for market flexibility.

The Board voted to approve the intergovernmental agreement and related authorization motions (motion: moved by Board member Us, seconded by Board member Johnson Davis). The motion to approve the intergovernmental agreement carried 4–1; a separate motion authorizing the board chair and superintendent to execute documents upon PFA approval carried unanimously.

District staff said the financing approach is a public-market bond sale scheduled for late November with a target closing in early December. Doug Hart (district financial adviser) told board members the recommended approach is a competitive public sale, with preliminary official statement and credit rating meetings with Moody’s and S&P planned in late October/early November. Hart said market yields had improved since planning began and that the district’s expected all-in true interest cost on the new-money portion was in the mid-single-digit range in current scenarios, though final rates will be set on pricing day.

Chief Financial Officer Dr. Lamita Broom summarized the planned use of proceeds: the ECLC and Decatur High School work are the primary new-money items; a possible refunding of a 2014 COP issue is included as an option depending on market savings. Broom and bond counsel said operational responsibility for the completed facilities will rest with the school district (maintenance, insurance, repairs) as part of the intergovernmental sale agreement; that is standard in PFA conduit financings.

Board members asked for additional detail on the expected weighted interest cost, the timeline for rating agency calls, and the operating-cost assumptions for the ECLC. Staff said final pricing and disclosure documents will return to the board for ratification after bids are received. Board member discussion included expressions of support for early-childhood capacity and questions about fiscal prudence and design cost. Public comment earlier in the meeting urged caution and more community engagement on the ECLC and potential K–2 school consolidation; board members noted those remarks would factor into next steps.

If the PFA approves the authorizing resolution at its meeting, staff said the district expects to finalize bond pricing and return to the board with the final financing documents for ratification prior to closing.

Votes and motions recorded

- Motion: Approve intergovernmental agreement of sale with the City of Decatur Public Facilities Authority for issuance of City of Decatur Public Facilities Authority Revenue Bonds, Series 2025. Moved by: Board member Us; Second: Board member Johnson Davis. Outcome: Passed, vote tally recorded as 4–1 (names associated with individual yes/no votes were not recorded in the motion minutes).

- Motion: Authorize board chair and superintendent to execute documents upon PFA approval. Moved by: Board member Us; Second: Board member Johnson Davis. Outcome: Passed unanimously.

Ending

District staff will return with final sale results, required closing documents and more detailed operating and enrollment assumptions once market pricing is known.