Board approves $5 million Series 2026 refunding bonds to stabilize levy

The Centennial School District board on Feb. 25 approved a resolution authorizing the issuance and sale of up to $5 million in general obligation refunding bonds, Series 2026, to advance-refund portions of the district’s voter-approved 2020 bonds.

Director Sotherton, who presented the board note, said the transaction is intended to "support stable and predictable debt service and tax levy rates during the interim period within the district's long range facilities planning framework." He described the plan as not creating "new money" and said it would not extend the final maturity beyond the original voter-approved schedule.

Sotherton told directors the bonds would be taxable refunding bonds; proceeds would be used to refund selected 2020 bonds until their 2030 call date. The presentation estimated the structure to be economically neutral with an estimated net present value impact of plus or minus 1 percent and noted the administration would execute the refunding only if market conditions support the anticipated outcome.

A motion to approve the refunding resolution was moved and seconded; the board voted in favor and the chair announced the resolution had been approved.

The board did not adopt other changes to the district's long-term debt strategy, and staff said future capital bond timing will continue to be determined through the district’s long range facilities planning and voter processes.

Next steps: district staff will proceed with sale and pricing only if market conditions meet the administration’s economic parameters; staff reserved discretion not to execute the refunding if conditions are unfavorable.