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Farmington board approves $40.39M refunding bonds; sale awarded to Jefferies
Summary
The board adopted a resolution authorizing issuance and sale of general obligation school building refunding bonds series 2025A; staff reported a sale-sized issuance of roughly $40.325M with projected debt-service savings around $845,000, and the board awarded the sale and approved the resolution by roll-call vote.
The Farmington School Board voted to adopt a resolution authorizing the issuance and sale of general obligation school building refunding bonds (Series 2025A), and awarded the bond sale to Jefferies of New York.
Director Houska introduced Jeff Seeley from Ehlers, who said the district sought bids that morning to refinance portions (maturities to 2028–2031) of the district’s 2016A bonds. Seeley reported the plan calls for issuing approximately $40,325,000 in new bonds, with underwriter compensation of about $73,669 and a premium that reduces the par amount issued. He said the combined effect of premium and lower coupons yields estimated debt-service savings of about $845,000 (exceeding a prior estimate of roughly $706,000 from the presale report).
Ehlers recommended awarding the sale to Jefferies as the best bidder, and the board moved to forego reading the full resolution and to adopt it as presented. The chair called for individual roll-call responses and the motion passed.
Jeff Seeley noted that savings from the refunding accrue to the debt service account and "go right back to the taxpayers" and are not available for other district projects. The bonds are expected to close and the old bonds to be paid off via escrow on Feb. 1 (closing year stated by the presenter).
