Piper Sandler outlines bond picture as Bolivar R‑I board adopts amended budget and 2025‑26 calendar

Piper Sandler representatives gave the Bolivar R‑I board an update on the district's debt and long‑range financing options, and the board approved an amended fiscal year 2024‑25 budget and the district's proposed 2025‑26 calendar.

Brent Blevins of Piper Sandler told trustees the district "has done a lot of good work over the last several years" on facilities and financing, and reviewed recent bond and lease purchase transactions, callable dates and refunding thresholds.

What Piper Sandler reported: Blevins said the district's April 2024 general obligation bond sale produced a lower interest rate than typical lease purchases because GO bonds are secured by an ad valorem debt service levy paid into the debt service (fund 3). By contrast, certificates of participation (COPs) or lease purchases are financed from the capital projects (fund 4) and the market prices them differently, producing higher yields for the district on lease purchases. Piper Sandler showed the district had roughly $28.47 million outstanding in combined general obligation series and that a substantial portion of those bonds is callable on dates stretching from 2023 through 2030; refunding can save money when market yields fall enough to cover transaction costs.

The firm noted the district's 2022 lease purchase for energy‑savings projects remained outstanding after the board chose not to use the 2024 GO bond proceeds to call that lease, because the refunding cost and market rates made a buyback uneconomic.

Board action — amended budget: The board approved an amended budget that staff said increases projected revenue by about $2.1 million and increases expenditures by roughly $5 million. District staff explained most of the expenditure increase reflects fund‑4 (construction and bond) activity that had not been captured in the original budget and some insurance and workers' compensation cost updates. Finance staff presented a midyear projection that showed an estimated unrestricted general fund balance around 16% under the amended figures, an increase from the 14.9% figure used in the original budget. The board approved the amended budget by voice vote.

Calendar and AMI days: The board also adopted the district's recommended 2025‑26 calendar (option A). Dr. Matthew Garber (district leadership) said the calendar was designed to make the district eligible for Missouri's 169‑day financial incentive. That requires a minimum number of days; the recommended calendar adds three days while keeping total instructional hours in compliance with state rules. The calendar uses up to six AMI (alternate method of instruction) days — virtual or packet‑based instructional days that count as attendance under DESE rules — before the district would need to add makeup days. "It would equate to about 1% to 2% of our state funding, which is for us about $140,000 to $280,000," Dr. Garber said, summarizing the financial importance of the incentive.

Other business: Piper Sandler presented hypothetical future issues based on modeled assessed value growth (Piper Sandler used conservative AV growth assumptions and showed sample issue years and amounts, including a $10 million placeholder in 2031). The presentation reviewed the district's constitutional bonding capacity (Missouri caps debt at 15% of assessed valuation) and concluded Bolivar R‑I is well below that threshold. Blevins said Piper Sandler will continue to monitor markets and advise on timing if refunding opportunities emerge.

Votes at the meeting: The board approved the consent agenda by voice vote; approved the amended budget; adopted the 2025‑26 calendar (option A); and approved the annual transportation ridership report required by DESE. In each case the board recorded voice votes and approval was announced without an itemized roll call in the transcript.

What to watch next: Piper Sandler said it is monitoring market yields for potential refunding opportunities for callable series, and staff said the district will continue long‑range facility planning in tandem with updated financing models. District staff will review March DESE transmittals and continue monthly budget monitoring; a budget work session is scheduled March 5 to go through the amendment in more detail.