Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Capital Bonds Finance topic
No spam. Unsubscribe anytime.
Board authorizes sale of remaining $48 million in 2022 bond authorization; tax rate impact described as slight
Summary
The Tempe Union Governing Board approved a resolution to issue the remaining $48 million of bonds authorized by voters in November 2022 to fund district capital projects, with staff projecting a modest increase in the district’s secondary tax rate and a timetable for sale and receipt of proceeds.
The Tempe Union High School District Governing Board voted 5-0 to adopt a resolution authorizing the district’s financing team to issue the remaining $48,000,000 from the voter-approved November 2022 bond authorization (Series B issuance).
What the board approved: Assistant Superintendent for Business Services Roland Carranza summarized the bond history and financing plan. The district issued $51 million of the voter-authorized $100 million in April 2023 and is seeking the remainder now that earlier projects are underway and 70% of the April 2023 issuance is complete.
Planned use of proceeds: Carranza said remaining projects include renovations to science classrooms, auditorium work, and districtwide projects such as concrete, fencing, flooring, roofing, plumbing, HVAC and LED lighting upgrades. The resolution authorizes the financing team to market and sell the bonds.
Debt impact and schedule: Carranza and financial adviser Janelle Gold said the issuance would modestly increase the district’s secondary tax rate, described in the presentation as “about a nickel” on the secondary rate to accommodate retirement of outstanding bonds; the structure is projected to remain smooth through 2033 and then step down. The district expects updated bond ratings from Fitch and Moody’s later in the week, to release a preliminary official statement on March 24, price the bonds around April 1, and receive proceeds in the county account around April 24.
Board action and vote: The board moved to approve the resolution authorizing the sale of Series B bonds. Motion passed 5-0 (President Barraza — yes; Vice President Steele — yes; Board Member Montero — yes; Board Member Hodge — yes; Board Member Gutierrez Miller — yes).
Other participants: The presentation listed the financing team present: financial advisor Janelle Gold (Hilltop Securities), district bond counsel Kim Campbell, underwriter Megan Burke (Stifel Nicolaus), and registrar/pay agent US Bank.
Next steps: Staff will seek updated credit ratings, finalize the preliminary official statement and proceed with the market sale according to the timeline presented. The board did not attach additional conditions to the authorization at the meeting.
