ISD 622 board approves 2026A facilities bond after below‑forecast interest bids

Independent School District 622’s school board approved the sale of General Obligation Facilities Maintenance Bond Series 2026A on Feb. 17 after municipal advisors reported stronger‑than‑expected market results.

Matthew Hammer of municipal advisor Ehlers told the board the district received 10 bids the morning of the sale and achieved a low true interest cost of 3.13%, a sizable improvement from a presale estimate of roughly 3.71%. "We ended up with 10 bidders…so that's the interest we've had in municipal bonds in Minnesota," Hammer said, adding that the narrow spread between low and cover bids indicated a healthy market for the issue.

Hammer said the sale produced a reoffering premium that deposited about $1.2–$1.3 million more into the district’s construction fund than had been anticipated in the presale report. Those additional dollars will be used for deferred maintenance and other projects identified in the district’s long‑term facilities maintenance plan.

Board members discussed briefly how bond proceeds are restricted. The superintendent and advisors reiterated that proceeds from the facilities maintenance bond must be used for capital projects and cannot be transferred to support the general fund or staffing costs.

The board voted to award the sale as presented; the motion was moved and seconded and the resolution passed on a voice vote.

Next steps: district staff will post the formal bond award documents and move the proceeds into the construction fund, where project draws and short‑term investments will be managed against the districts’ spending schedule.