Clayton County board approves $495 million bond resolution, accepts Truist bid with May 31 closing deadline

The Clayton County Public Schools Board of Education voted unanimously May 5 to adopt a $495 million bond resolution intended to fund district capital projects and to lock a 5.13% interest rate from Truist Bank if the district closes on the issue on or before May 31.

The vote follows voter approval of a SPLOST continuation and the bond question in a March 18 referendum; school officials and financial advisers told the board that the Truist term was the lowest of four bids and that the 5.13% rate would rise to 5.16% if the district closes after May 31. The board added the bond resolution to the business agenda earlier in the meeting and then approved the resolution at the meeting’s end.

Board chair Charles White presided as financial staff and outside advisers outlined the timeline. Clayton County staff said bids were solicited in April and four responses were received; Truist’s 5.13% bid was presented as the most favorable. Financial adviser Ed Wall and district finance staff member (Miss Bivens) told the board the rate was guaranteed only if the district closed by May 31 and that market volatility could change available terms.

Wall said the bonds carry a 25-year term and will be repaid from SPLOST collections and a property-tax pledge above the district’s 20-mill cap. The district previously sold approximately $280 million in bonds; the new $495 million issue was sized based on conservative SPLOST revenue assumptions the advisers described to the board. Wall said the district’s SPLOST collections have averaged about $5.8 million per month (roughly $70 million per year) in recent periods and that the bond-sizing assumed 0% growth for conservatism.

Board members asked how falling SPLOST receipts or other economic changes would affect debt service. Wall and district staff said they modeled a downside scenario and concluded SPLOST declines of about 10% would not prevent debt service from being met; the bonds are secured by SPLOST and a property-tax pledge. Advisers also said the resolution includes prepayment terms that let the district redeem up to 10% of the outstanding principal in a year without penalty during the initial period and allow penalty-free prepayment after five years.

During the discussion, District 7 member Sabrina Hill pressed for clarity on the 25-year amortization and what options the district would have to shorten the schedule. Wall said the bond documents include redemption language and that the board could elect to use excess SPLOST receipts to shorten the term in future years. He said that when earlier bonds paid off, annual debt-service obligations would decline and free funds would be available for pay-as-you-go capital projects or additional debt reduction.

The board moved the item onto the agenda earlier in the meeting after a motion by District 2 member Mark Christmas and a second by District 6 member Mary Baker; the full resolution was discussed under the business agenda and approved later in the evening. The final motion to adopt the bond resolution was made and seconded on the record and the board chair called a unanimous vote to approve the superintendent’s recommendation.

Votes at a glance - Added bond resolution to the business agenda (motion by Mark Christmas; second by Mary Baker) — approved to add to agenda. - Consent agenda (financial report; SPLOST revenue report; purchasing report; budget amendments; SPLOST construction report; capital purchasing report; personnel changes) — approved unanimously. - K–12 social studies and 9–12 language arts textbook adoption — approved unanimously. - Policy series J (readings completed as required) — approved unanimously. - Appointment: Sharita Slay, director of instructional technology — approved unanimously. - Employee tribunal hearing 2024-2025-05: board accepted hearing board recommendation — approved unanimously. - Bond resolution (accept superintendent recommendation and close on Truist term if conditions met) — approved unanimously.

Board and staff cited the voter-approved March 18 SPLOST/bond referendum as the public authorization for issuing debt. District officials said the March vote authorized a maximum interest cap well above the bid accepted; the current proposed terms were below that cap. The board chair and superintendent asked staff to continue communicating timing and any material changes to the public before closing.

The board’s action concludes the board-level approval step; the resolution sets terms authorizing staff to finalize documentation and close under the stated conditions. District staff said they would return notices and materials as required and work with the district’s bond counsel and financial advisers to complete the closing.

The meeting concluded with routine announcements and adjournment.