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Saint Paul schools approve $76 million in financings after favorable market bids
Summary
The Saint Paul Public Schools Board unanimously ratified awards for $27 million in certificates of participation and $49 million in general obligation bonds after municipal advisors reported interest rates below planning estimates that will produce multi‑million dollar savings for taxpayers.
The Saint Paul Public Schools Board of Education on Sept. 23 ratified two bond transactions to fund ongoing maintenance and construction under the SPPS Builds plan: $27,000,000 in Certificates of Participation (Series 2025A) and $49,000,000 in General Obligation school building and facilities maintenance bonds (Series 2025B). Both measures passed unanimously by roll call.
Tom Sager, Executive Chief of Financial Services, introduced the financing summaries and said the bond closings are scheduled for Oct. 15, when the district will receive the proceeds. Michael Hart, the district’s municipal advisor, reported the COP sale attracted eight bids and the winning bid (Morgan Stanley) priced at 3.85 percent — about 0.68 percentage points below the district’s planning estimate — producing an estimated taxpayer savings “more than $1,500,000.” The general obligation sale received 13 bids; the winning bidder (listed in the presentation as Montgomery Scott) offered a rate near 3.78 percent, about 0.69 points below plan, producing more than $2.5 million in savings in the district’s planning comparison.
Hart said the market window and solid demand helped secure the lower rates and that bond proceeds will be held in segregated accounts and invested during construction. He also reminded the board that tax‑exempt debt benefits from federal subsidies but requires compliance with IRS rules and regulations.
Chair Henderson moved the resolutions authorizing the lease purchase agreement and issuance of the $27 million COPs and authorizing the $49 million GO bonds; both motions were seconded and passed by unanimous roll call vote. Board members asked about the district’s estimating cushion and staff confirmed conservative assumptions were used in planning.
The financings identify projects such as Hidden River Middle School, Highland Park Middle School, Barack and Michelle Obama Elementary and Bruce Vento Elementary for COP‑funded work and broadly support the district’s facility maintenance and construction objectives. With closings set for Oct. 15, staff said the district will begin using proceeds as bills come due and continue investment monitoring through the construction period.
