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Thompson School District outlines $99 million bond budgets and steps for bond issuance
Summary
Staff described proposed distribution of the 2025 bond funds, a district website for transparency, and the planned $99 million municipal bond issuance including ratings strategy, issuance parameters and a Dec. 17 parameters resolution for board authorization.
Todd, district bond program lead, presented the proposed distribution of the bond program budgets authorized by voters and described a plan to load all project budgets into the district’s accounting software and onto a public website so citizens can see scope and dollar amounts for each school. He said projects were grouped into three priority buckets — security, maintenance and growth — and the district included a contingency line to address cost escalation.
District financial and legal advisers briefed the board on the bond issuance plan. Maddie Prdanovic of Hilltop Securities, the district’s municipal adviser, and Kim Crawford of Butler Snow, bond counsel, reviewed the issuance timeline, rating considerations and sample parameters that the board will be asked to adopt at the Dec. 17 meeting. Staff said the district currently carries an Aa2 rating from Moody’s and an AA- from S&P; staff indicated they may proceed with only Moody’s to reduce issuance costs if investor demand remains broad.
Counsel described key parameters that will be in the authorization resolution: a maximum par amount of $99,000,000, a planning target of 20 years to final maturity (anticipated 2045 with a buffer to 2046), a maximum total repayment ceiling of $195,000,000 and an annual maximum repayment cap of $19,000,000. Counsel also explained an optional redemption (call) structure typical for municipal bonds — the district expects a 10-year call (callable on or after Dec. 2035) — and that any final sale must fit within the voter-authorized parameters or the board must reconvene.
District staff explained the sale timeline: document drafting and disclosure work in the coming months, ratings calls in January, investor marketing and pricing in early February, and closing shortly thereafter. Staff also noted costs of issuance are expected to be in the low hundreds of thousands and that premium from sale proceeds is treated as additional interest under state law and must comply with the repayment caps set by voters.
No action was taken at the study session; the board will consider a parameters resolution and the bond-issuance documents at the next regular meeting.
