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District bond dashboard shows $4 million in earned interest, targets final Series 3 sale in May
Summary
Building and site committee reviewed the quarterly bond dashboard: original 2021 bond $186 million, about $4 million in earned interest accounted conservatively to avoid arbitrage, approximately $8.3 million cash on hand for Series 2, and district staff targeting a Series 3 bond sale in early May to raise roughly $38 million.
Livonia Public Schools' building and site committee reviewed the quarterly bond-program dashboard and finance tables, discussing earned interest, remaining cash flow and plans for a final bond series.
Plant Moran/RealPoint representatives described the district's bond program accounting. Staff said the original 2021 bond totaled $186 million; the dashboard includes roughly $4 million in earned interest that the district is conservatively counting as construction funds while working with PFM, the district's financial advisors, to ensure no federal arbitrage rules require a return of funds. "We are confident with the $4,000,000 of interest we've accrued thus far," a staff presenter said but noted arbitrage thresholds require monitoring.
The dashboard shows roughly $8,299,000 remaining in the bank account for Series 2 disbursements. Staff said the district aims to sell the final Series 3 in spring, targeting early May depending on market conditions to secure the final approximately $38,000,000 in bond proceeds for the program.
Committee members discussed cost escalation, supply-chain impacts and an internal task force that monitors contractor tariff claims; staff said contractors must document tariff-related cost increases and the district will evaluate claims case-by-case rather than accepting unverified escalation requests.
The committee also reviewed contingency, forecasted contracts and unallocated reserves; staff said the program is "tight" and they are being mindful of 2025 and 2026 commitments. No board action was taken at the study session; staff will return with formal items where required.
Clarifying details: original bond amount $186,000,000; earned interest conservatively accounted at about $4,000,000; cash on hand for Series 2 about $8,299,000; target Series 3 sale expected to raise about $38,000,000, timing contingent on market conditions and PFM advice.
