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Bettendorf board approves $9.995 million sales-tax bonds; TD Securities awarded sale
Summary
The Bettendorf Community School District board voted 7-0 to approve a resolution directing the sale of $9,995,000 in school infrastructure sales-tax revenue bonds series 2025. Underwriters chose a bid using bond insurance that produced a true interest cost of about 4.3912%.
The Bettendorf Community School District Board of Education voted unanimously Wednesday to direct the sale of $9,995,000 in school infrastructure sales-tax revenue bonds, Series 2025, following a presentation from Piper Sandler.
The action approves a resolution directing the sale to TD Securities of New York, N.Y., based on competitive bids opened that day. Matt Gillespie of Piper Sandler told the board seven bids were received and the winning structure—using bond insurance from Build America Mutual—produced a true interest cost (the “TIC” or “tick”) of 4.3912 percent.
Why it matters: The bond proceeds will be used to fund portions of the district’s capital project package the board has been planning. Gillespie said the winning bidder structured a premium into the principal that increased the gross proceeds beyond the $9,995,000 par amount; the sale included a premium paid to the district of $83,006.97, producing approximately $10,078,006.97 in initial proceeds. Uses shown in the board packet include a required reserve fund of about $886,000, an underwriters’ discount of roughly $129,009.48 and cost-of-issuance items near $117,000, with the remainder shown in the packet for construction and related project costs.
Gillespie walked the board through the amortization schedule, call provisions and next steps. He told members the bonds are callable beginning July 1, 2033, and that financing was structured for a 20-year repayment. He also said the district received an A+ rating from Standard & Poor’s for the sales-tax bonds and that bond insurance allowed underwriters to rely on a higher insurance rating when marketing the issue.
Board members asked questions about the schedule, the district’s past and future borrowing plans and how the current issue fits with anticipated 2026 and 2027 financings. Gillespie said the packet presents the only factual numbers for the 2025 sale and that amounts shown for future series are estimates for planning; future issues may be adjusted depending on bids, enrollment-driven revenue and contractor bids on work.
Formal action: A board member moved to approve the resolution “considering bids for Bettendorf CSD sales tax 2025” as printed on the official form; the motion and a second were on the record and a roll-call vote approved the resolution 7–0. The board directed staff to complete the legal documents that will finalize the sale at a later meeting and to accept the $100,000 good-faith deposit already wired by the winning bidder.
What’s next: The remaining bond proceeds are scheduled to be wired to the district in early August and will be invested until needed for architect fees and construction draws. Staff and the district’s financing team said they will return to the board later this winter with updated cash-flow information as the project proceeds and as the district considers any additional issuance needs.
