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Board approves bond‑redemption resolution to reduce excess debt‑service reserves and preserve levy
Summary
The board approved a Stifel‑recommended resolution to redeem selected 2020 bond maturities using debt‑service fund balance, lowering the district’s debt‑service reserve from an amount above state limits and allowing the district to keep the current debt‑service levy rate.
The Ferguson‑Florissant R‑II Board on Wednesday voted to approve a bond‑redemption resolution that will use debt‑service fund balance to retire certain 2020 bond maturities and reduce the district’s excess debt‑service reserves.
Lorenzo Boyd, managing director of investment banking at Stifel, briefed the board on the district’s five series of outstanding general‑obligation bonds, a 2016 certificate of participation and the district’s underlying credit rating (reported as A+). Boyd said the debt‑service fund reserve stood at roughly 208% of the statutory limit and recommended a targeted redemption to bring the reserve below the cap while retaining the district’s 26.7¢ debt‑service levy.
"We're gonna take . . . roughly $4.1 million to pay off $4.1 million of bonds," Boyd said, describing a planned wire later in November to pay specific 2028 and 2029 maturities in the 2020 issue so the issue’s final maturities would move to 2027.
Board members asked clarifying questions about timing, the effect on levy calculations and remaining fund balance. After a motion and second, the board approved the resolution by roll call; attendees were told the district will transmit the resolution documents and that the transaction must occur before year‑end.
The action is intended to bring the district’s debt‑service reserve into compliance with state statute while avoiding a levy increase. The finance office will finalize paperwork and report back to the board.
