Florence County SD3 board approves resolution to authorize up to $25 million in special-obligation equipment bonds

The Florence County School District 3 Board of Trustees on Dec. 19 voted to approve a resolution authorizing the issuance of special-obligation bonds of up to $25,000,000 to fund equipment and other nonpermanent improvements.

Ben Ziegler, an attorney working with the district, outlined the financing plan and the attached form of bond documents and told trustees the structure would allow the district to finance items such as HVAC, electrical work, stadium lights and turf without counting against the district’s constitutional debt limit. "This will authorize the issuance of these $25,000,000 bonds," Ziegler said, describing the plan as an equipment-financing structure paired with a public sale of bonds in the secondary market.

Ziegler said the county recently adopted a revenue-sharing program for large industrial projects — he described $250,000,000 as a threshold for the county’s sharing formula — and that the district expects some of that new revenue to be available to help make bond payments. He told the board the resolution approves the general form of bond documents and grants the superintendent authority to select a trustee and underwriter and to finalize changes to the documents as needed before sale.

A motion by Dr. Judy Vinson, seconded by David Fryson, carried without recorded opposition. The board voted 'aye' and the chair declared the motion carries.

The resolution and the attached form documents allow the district to structure the bonds as special-obligation, appropriation-based payments to a trustee rather than general-obligation debt backed by the district’s taxing authority; Ziegler said that approach keeps the financing outside the 8% constitutional debt limit but noted annual payments would still be subject to appropriation.

According to the presentation, the financing could be structured for terms up to 30 years and would fund up to $25,000,000 of nonpermanent equipment and related projects; the superintendent and financial advisors will prepare an official statement, seek ratings, hire an underwriter and proceed toward a sale early in the new year. Ziegler warned the underwriter or rating agency might later request board ratification of final terms, and the district could return to the board in January for tweaks.

Next steps noted at the meeting included drafting the offering document, obtaining ratings from agencies such as S&P, and proceeding to a public sale once documents are finalized. The board took no additional financing action at the meeting beyond approving the resolution in principle.