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District financial advisers outline $50 million GO bond plan, target no property-tax increase
Summary
Financial advisers from PFM told the board the district is planning a $50 million general-obligation bond package for projects, targeting a November 2025 voter question and a debt-service levy structured to avoid a net property-tax increase for taxpayers under current law.
A financial-team presentation at the May 1 Southeast Polk board meeting outlined plans for a proposed $50 million general-obligation (GO) bond package, a timeline to place the question before voters in November 2025, and a repayment plan designed to keep the district’s debt-service levy near its current level.
Suzanne Gerlach (introduced by district staff) and a PFM adviser described the proposal as a $50 million project budget with a $51 million “not to exceed” bond authorization to cover issuance costs. The advisers said they are using conservative market assumptions (roughly 4.5–5.0% interest-rate assumptions for planning) and intend a 20-year term. The plan, they said, wraps new principal repayment around existing outstanding bonds and targets a debt-service levy near $2.50 per $1,000 of taxable valuation so the district can proceed “with no property tax increase” under current assumptions.
Key dates and mechanics described to the board included drafting petition language with bond counsel, circulating signatures equal to 25% of the last school-board election turnout, filing the petition and then adopting a resolution to call the election (target petition filing deadlines discussed included late August with an August 28 Polk County Auditor deadline to place an item on the November ballot). Advisers said, if voters approve the bonds in November, architects and bidding would follow so construction could begin in summer 2026; bond sale and closing for proceeds would likely occur in spring 2026 to fund projects for the 2026 construction season.
Advisers also reviewed legal capacity: the district’s assessed value and current outstanding debt mean it was using roughly 29.5% of its legal debt limit at the time of the presentation, and even after the proposed issue advisers estimated utilization would remain well below statutory caps. The presentation noted that pending state property-tax legislation could change levy mechanics and rollback assumptions; advisers said Southeast Polk appears well-positioned in several modeled versions of that legislation but recommended continuing monitoring because the state legislation remained fluid.
Board members asked clarifying questions; advisers said they would return with updated language and timelines as needed.
