Redford Union board authorizes sale of Series 1 of 2025 school bonds; officials outline timeline and safeguards

The Redford Union School Board unanimously voted to authorize the sale process for Series 1 of the district—s 2025 school building and site bonds, approving an authorizing resolution that begins the bond issuance steps and sets parameters for the initial sale.

Board members moved and approved the resolution after a presentation by bond counsel Rob Gavin and an overview from Superintendent Jason Witt. The board—s action authorizes district leaders to proceed with the competitive sale, accept the lowest-cost bid within established limits and complete the closing steps that put bond proceeds into a capital projects fund.

Why it matters: Voters previously approved a $44 million capital bond proposal. The board—s authorization allows the district to issue about $12.5 million of that approved capacity now, enabling the district to start construction and project work described in its application to the Michigan Department of Treasury.

During a 40-minute presentation, Rob Gavin, identified as bond counsel, walked the board through the required documents and the timetable. He said the official statement (the offering document investors use) had already been drafted by municipal adviser Baker Tilly and will be published in early June after final revisions. Gavin described the sequence: bond rating, publication of a notice of sale, a week-long bidding period, selection of the lowest-cost bidder, finalization of offering documents and a closing call that releases proceeds to the district. "They're the numbers guys," Gavin said of the municipal adviser and its role in sizing the issue and preparing financial data for investors.

Key terms and process details disclosed to the board: - The board intends to issue roughly $12,500,000 of bonds from the voter-approved $44,000,000 authorization; the bonds are structured to be paid over roughly 28 years. The final par amounts and maturities may be adjusted after bids are received. - The resolution authorizes competitive sale procedures and empowers district officials to accept bids within set parameters: maximum interest rate of 6%, minimum issue price not less than 99% and other technical limits described in the resolution. - The district will participate in the Michigan school bond qualification loan program; Gavin said participation provides an extra level of security because the state treasurer reviews and qualifies the application prior to issuance. - Proceeds will be held in a capital projects fund and debt service collections will be kept in a separate debt service fund and bank account to pay principal and interest. The board was told those funds and processes are audited annually.

Board members asked practical questions about timing and risk. A board member asked how a weaker district financial position would affect the sale; Gavin said credit changes are disclosed to rating agencies and could affect the bond rating and the interest rate investors demand. Gavin also noted the practical deadline for placing the levy on the summer tax roll and said the district is aiming to complete steps before tax-roll deadlines in order to begin levying for debt service this summer.

The motion authorizing the sale process was moved by Mister Osovskiy and seconded by Missus Martin. A roll-call vote recorded approval by Mister Osowski, Mister Bailey, Missus Johnson, Missus Martin, Miss Miller and the chair; the motion carried 6-0.

Next steps: the board will receive the final official statement and the district expects a bond rating in early June, a notice of sale and a competitive bid opening (scheduled for early June). After award and closing, bond proceeds will be placed in the capital projects fund and construction can begin.