Keystone Oaks board adopts debt ordinance to allow up to $38 million in bonds for school projects

The Keystone Oaks School District Board of Education voted to adopt Resolution 02/2026, a debt ordinance under the Local Government Unit Debt Act that authorizes a maximum principal amount of $38,000,000 in bonds to finance Phase 1 work on district facilities and related infrastructure. The resolution includes a provision to size the final sale so it will deliver about $35,000,000 in proceeds to the district at closing.

The measure, discussed in public comment and then formally moved and carried on a roll-call vote, was described by a public speaker as a vehicle to enable the first phase of the district’s planned school projects. "It authorizes up to $38,000,000 in bonds," the speaker said during the public comment period. Staff told the board a bond‑rating call is scheduled next week and that the district expects sale and closing roughly a month after that, with the presenter estimating a March timeframe for closing.

During questions from trustees, a staff member summarized the estimated fiscal impact: "It will add about $2,100,000–$2,200,000 of debt payments every year," the staff member said, cautioning that final annual impact will depend on budgeting choices, contract costs and the tax base. Staff noted the district uses zero‑based budgeting and may need to levy to the index in coming years; the board was told those decisions will be made in the context of the annual budget process.

Board members and staff discussed term and schedule details in the record: one speaker framed a 30‑year schedule as aligning with the useful life of HVAC and mechanical systems, while another said the maximum schedule tied to this issue is 25 years and that Phase II could be wrapped to adjust maturities later. Staff also said consultant documents and district materials label phases differently and promised to circulate a district-defined Phase 1 scope (exterior, plumbing, electrical, infrastructure) and updated cost numbers ahead of the finance and buildings committee meetings.

The board approved the resolution by roll call; the meeting record shows the item carried with six recorded affirmative votes. Next steps outlined by staff include the bond rating call, finalizing a preliminary official statement, and proceeding to sale and closing once market conditions and the rating permit.