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Board authorizes FY27 facilities financing, approves five‑year facilities plan
Summary
The board approved a package of long‑term facilities maintenance funding and school building bonds and adopted the district’s five‑year facilities implementation plan, authorizing up to $25.9 million in facilities maintenance bonds and $15 million in school building bonds for FY27 and formal adoption of the five‑year FMP.
The St. Paul Board of Education on July 15 approved the district’s fiscal‑year 2027 long‑term facilities maintenance (LTFM) plan documentation and authorized the intent to issue general obligation bonds not to exceed $25,900,000 for facilities maintenance and $15,000,000 for school building purposes. The board also adopted the five‑year facilities implementation plan for fiscal years 2026–2030.
Michael Hart of PMA Financial, the district’s municipal advisor, presented the financing plan and said the new FY27 request extends the multi‑year program and was driven by a mix of available long‑term facility cash, needed project funding and pay‑as‑you‑go levy assumptions. "We intend to issue $25,900,000 of general obligation facility maintenance bonds and $15,000,000 in general obligation school building bonds," Hart told the board.
Key financial details: Administration said the LTFM program will increase the pay‑as‑you‑go portion of the levy from about $20.1 million to approximately $23.1 million, an increase of roughly $3.0 million. Hart and staff also noted the district will combine bond proceeds with existing LTFM cash and previously‑authorized borrowing to fund about $130 million of planned projects between late FY25 and FY27; the additional borrowings are designed to fill a funding gap created by project pacing and available reserves.
Homeowner impact and tax shift: The district estimated the capital facilities component of taxes on a median home would rise by about $35 from pay 2025 to pay 2026 under the plan; administration said roughly $11 of that is attributable to decisions in the plan and about $24 results from shifts in property values across classes that change how the tax burden is distributed.
Five‑year plan adoption: Facilities staff presented the FY26‑30 five‑year implementation plan (164 projects) including ongoing major work (Bruce Vento, Hidden River, Obama) and new and continuing HVAC, roof, accessibility and inclusive‑restroom projects. The board adopted the five‑year plan after a gate‑check presentation detailing project types, prioritization criteria (building condition, educational alignment, equity) and schedule flexibility.
Board vote and next steps: The financing resolution and LTFM documentation were approved unanimously; the resolution set parameters (maximum amounts, maximum interest ceiling of 5.5 percent and authorization through 12/31/2026) and allows designated district officers to award and execute sale documents within those parameters. The five‑year facilities plan was adopted unanimously, giving administration authorization to proceed with prioritized projects and to return to the board for subsequent gate checks and project authorizations.
Ending: Facilities staff said additional project‑level schedules, contingency reconciliation and monthly project reports will be provided to the board and posted for public transparency as work continues.
