The Shawnee Heights Board of Education on a unanimous 6-0 vote authorized the sale of up to $65 million in Series 2026 bonds, approved early redemption of outstanding Series 2012 bonds and authorized the facility committee to begin contract negotiations with Kendall as construction manager.

Dustin Avey of Piper Sandler told the board the primary objective is to "deliver on the commitment to voters that was made during the bond campaign, which was, a mill levy increase not more than 1.5 mills." He said the current estimated interest rate is "4.75% over 25 years," and that updated market conditions mean total interest costs now are about $5 million less than earlier projections.

Avey said the district plans to issue the bonds in a single sale of $65 million to maximize investment earnings and reduce issuance duplication. He estimated roughly $2,000,000 in investment earnings during construction, subject to market changes and the project draw schedule. Piper Sandler expects to be in the market and secure final rates around the board's Jan. 20 meeting, with a planned closing around Feb. 19 and redemption of the outstanding Series 2012 bonds on March 1.

On procedural questions about refinancing if interest rates fall, Avey said typical tax-exempt bond prepayment provisions limit advance refunding and noted a 2017 federal tax-code change affecting advance refunding on a tax-exempt basis; he said refinancing is most advantageous within about 90 days of the prepayment date, which is commonly eight years after issuance.

The board voted 6-0 to authorize the sale resolution (motion moved by Sarah Sanders; seconded by Rosa Cavasos), and later approved an authorizing resolution to redeem the Series 2012 bonds (motion moved by Rosa Cavasos; seconded by Rocky Biznitz). In a separate but related vote, the board approved authorization for the facility committee to enter contract negotiations with Kendall after the committee's unanimous selection of Kendall for packages A and B; Tucker Petticord described the initial contract as a standard AIA preconstruction agreement with later amendments for guaranteed maximum prices as phases are bid.

What happens next: Piper Sandler said a bond-rating call with the rating agency is scheduled, and the district anticipates a high-A to lower double-A rating band. The board will consider final action on the bond sale when final interest rates are known, expected at the Jan. 20 board meeting.

Votes at a glance: the board approved the sale authorization, the early redemption resolution and authorization to negotiate with Kendall all by recorded voice vote as 6-0.