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Ames school board approves redemption of two GO bond series, adopts policies
Summary
The Ames Community School District Board of Education voted unanimously to approve two resolutions authorizing redemption of general obligation (GO) school bond series and approved previously discussed policy updates; board members said prepaying bonds reduces taxpayer interest costs.
The Ames Community School District Board of Education approved two resolutions authorizing the redemption of general obligation (GO) school bond series and adopted previously discussed policy updates during a brief regular meeting.
The board voted unanimously to approve a resolution authorizing the redemption of general obligation school bonds described in the motion as “series 20 19 dated 06/05/2019,” approving a fifth amendment to an escrow agent agreement and levying a tax for the stated fiscal year for that redemption. The board then voted unanimously on a separate resolution authorizing the redemption of general obligation school bonds “series 20 21 dated 02/11/2021,” approving an escrow agent agreement and levying a tax for fiscal year 2026 for that redemption.
Sherry, speaking to the board as part of the bond discussion, said the district is authorized to levy up to $4.05 per $1,000 for the debt service levy that pays bond debt and described the repayment timing of existing bonds. She said the district has three GO bonds, that the district has levied the maximum for the 2018 GO bond which will be paid in full in 2028, and that the 2019 bond would be paid in totality in 2029 under the measures discussed. She also said the board would be able to leverage funds to begin prepaying the 2021 bond to accelerate payoff of the high school and reduce taxpayer interest costs.
The board also approved a set of policies that had been discussed at a prior meeting; that item moved forward as “old business” and passed on a 7-0 vote.
Votes at a glance - Resolution authorizing redemption of GO school bonds ("series 20 19 dated 06/05/2019"), approving a fifth amendment to escrow agent agreement and levying a tax for the stated fiscal year: Approved 7-0 (roll call recorded as all members voting aye). - Resolution authorizing redemption of GO school bonds ("series 20 21 dated 02/11/2021"), approving an escrow agent agreement and levying a tax for fiscal year 2026: Approved 7-0 (roll call recorded as all members voting aye). - Approval of consent agenda (includes routine items): Approved 7-0. - Approval of policies listed as old business: Approved 7-0.
The board’s superintendent reported no substantive items for the meeting beyond scheduling reminders; the board’s planning calendar notes the next, longer board meeting is scheduled for Feb. 24 at 5:30 p.m. The district indicated no members of the public had signed up to speak during the public forum.
Clarifying details discussed at the meeting included the $4.05-per-$1,000 statutory cap the board referenced for the debt service levy, the planned payoff timing for the district’s 2018 and 2019 GO bonds (paid in full in 2028 and 2029, respectively, as stated by a staff presenter), and the board’s intent to apply surplus or leveraged funds toward prepaying the 2021 bond to reduce interest costs. The meeting record did not specify the exact tax-rate change amounts or the dollar value of the prepayments.
