Okemos board briefed on series-3 bond plan: up to $96.2M issuance, no millage increase planned
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Summary
Executive Director Lentz and Superintendent Hood updated trustees on a planned series-3 bond draw (up to $96.2 million, 30-year term) with no proposed millage increase, discussed using negotiated sale, sinking-fund tradeoffs (technology vs. roofs) and bus cost overruns.
Executive Director Lentz told the Okemos Board of Education that the district plans a series-3 bond issuance in early 2026 for up to $96.2 million with a 30-year term and a recommended negotiated sale. "Again, no millage increase," Lentz said, and the proposed structure would allow the district and superintendent to accept an underwriter's offer and return to the board to ratify the sale.
Lentz explained the district's levy structure: operating mills, an "extra voted" mill pool (used to preserve an 18-mill voter-authorized level under Headley rollback rules), and the existing sinking fund (currently about 0.985 mills after rollbacks). He emphasized the district has planned multiple bond series rather than borrowing the full amount at once to reduce interest costs over time.
Board members and administrators discussed tradeoffs in the bond and sinking-fund planning. The administration removed a planned second round of student-device purchases from the bond application and is discussing options to fund future devices; the sinking fund can be used for instructional technology but doing so would reduce funds available for roofs, flooring and other capital projects. Lentz called out bus purchases as a noteworthy pressure: some buses arrived ~40% more expensive than estimated and completing all 17 purchases at current prices could push the project roughly $700,000 over budget.
The board discussed refinancing options if interest rates fall, the possibility of pursuing a separate sinking-fund millage before the current sinking fund expires in December 2031, and the need for more detailed bids for Cornell and Kenowa projects. Superintendent Hood said the district plans a work session in October to dig into long-range facility needs, bond timing and funding options.
What happens next: administration will present a bond authorization resolution at the next meeting (first meeting in October) to allow the sale process to proceed, and the board will later ratify terms after the negotiated sale.
