Board told district will seek $38 million final series of 2021 bonds; staff also briefed on bond dashboard, projects and state water-filler grant

The Livonia Public Schools Committee of the Whole was briefed Jan. 21 on plans to sell the final series of the district's 2021 bond and on the bond program's quarterly dashboard, project status and grant-funded compliance work.

Allison Smith, the district’s chief financial officer, told trustees the remaining series would be roughly $38 million and that staff plan to sell it via a negotiated sale using the district’s usual advisers. “It’s hard to believe it’s already time for the sale of our third series of bonds,” Smith said, summarizing why the district spread the $186,000,000 authorization across three series and how the timing matches construction needs.

Smith said the resolution to authorize the sale and related financing documents will be prepared for the board’s regular meeting next week and that the district would continue to use the financial advisor and counsel it has used on prior series. She said staff would propose JPMorgan Chase as underwriter, PFM as financial advisor and Troon Law Firm as bond counsel, and that the board packet will include the formal resolution for the upcoming vote.

Why it matters

Bond proceeds and related interest earnings fund major renovation and equipment work across Livonia Public Schools. The district's final series and other budget decisions affect how quickly projects proceed and how much taxpayers ultimately pay in debt service.

What the board heard

- Sale plan and tendering option: Smith described a negotiated sale for the $38 million series and asked trustees to allow staff to also revisit a bond-tendering option explored in 2023. Under a tendering approach, the district would offer to buy back existing refunding bonds from current holders if doing so produced net present value savings. Smith said staff are targeting at least a 2% net present value savings — roughly $2,000,000 — and would only pursue tendering if the market response made financial sense.

- Bond program totals and interest: Smith presented the quarterly cost summary for the 2021 bond program. She said the original authorization was $186,000,000 and that, including interest earned to date, the program budget now stands "just north of $190,000,000," adding that the district had earned about $4,000,000 of interest that had been added conservatively to the budget.

- Current commitments and remaining work: staff reported roughly $139,000,000 spent to date against current commitments and identified a forecast of further contracts and purchase orders. Staff emphasized contingency and unallocated reserve balances and said the team is prioritizing planned projects rather than new wish-list items.

- Funding mixes and grants: presenters reminded the board that the bond has been augmented in places with other local funds, sinking fund balances, grant awards and allowable food-service equipment purchases. Smith said the district also received $500,000 in state funds to help meet a new legislative requirement for water bottle fillers and associated filtration work.

- Workforce and logistics: facilities staff warned that replacing filters and adding approved bottle fillers is labor-intensive, requiring plumbing and electrical work in many buildings. Staff said they are using in‑district trades where possible and contracting locally when necessary; they also noted ongoing difficulty recruiting electricians and plumbers.

Bond-funded projects highlighted

District staff also reviewed several active or imminent bond-funded procurements:

- HVAC/AC at career-technical and shop spaces: A low responsible bid from Quality Air for retrofit HVAC units in a set of auto and wood-shop classrooms came in at $1,251,018, covering rooftop units and replacement of original equipment. Facilities said a contingency will be included when the item is presented for board approval.

- High-school stadium lighting (materials): The district proposes purchasing LED stadium lighting materials from Musco for all three high-school stadiums. The material package is budgeted at $672,479; installation will be presented separately for approval and scheduling to try to accommodate spring or early-fall athletics.

- Field-house batting cages (change order): A clarification of scope for the new field-house batting cages increased the cost by $9,575 per high school to supply two-batter (split) cages instead of single cages. The three-school change order totals $28,725 and will be added to the upcoming consent/voting agenda.

What staff briefed about sale mechanics and safeguards

Smith and the district’s finance consultant said the negotiated sale approach gives more structuring flexibility than a competitive sale and that the team uses PFM to advise on pricing and structure. Staff also noted the regulatory requirement that the district must expend 85% of bond proceeds within three years of issuance; that timing was part of the reason the district sold the authorization in three series so it would not begin paying interest on funds before they are needed.

Next steps

The formal resolution authorizing the sale and related documents will appear in the board packet for the next regular meeting. The board will vote on the financing authorizations then; any tendering steps would proceed only if post-sale analysis and market outreach demonstrate the stated minimum net present value savings.

Speakers quoted or cited in this report were limited to individuals who spoke during the finance and building-and-site items.