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Baird adviser outlines $7 million financing plan; board to consider parameters resolution May 27
Summary
Baird financial adviser Jordan briefed the Silver Lake J1 School District board on a $7 million bond financing plan, reporting a modeled interest rate of about 5.12% and reaffirming a $0.55-per-mill tax impact; the board will consider a parameters resolution on May 27 to allow staff to execute the sale when market conditions are favorable.
Jordan, a financial adviser with Baird, told the Silver Lake J1 School District board on Tuesday that the district’s $7,000,000 referendum debt could be structured to meet the tax-impact promise voters were given and still limit interest costs. "You don't need all 7,000,000 of it right away," Jordan said, urging a single issuance and short-term investment of proceeds to earn additional project funds.
The presentation laid out the financing goals: keep the referendum tax impact at $0.55 for debt, minimize total interest expense and time issuance to reduce rate risk. Jordan said the district’s modeled interest rate in current market conditions was about 5.12%, below the referendum estimate of 5.25, and recommended a 20-year repayment structure consistent with state limits.
Why it matters: approving a parameters resolution would let the board set the acceptable terms now and delegate authority to the district administrator to finalize the sale when market conditions meet those parameters, avoiding the risk of selling on a single poor-pricing day. Jordan said the parameters approach is intended to give the district flexibility to time the market and avoid locking in an unfavorable rate on a specific calendar day.
Board members asked about timing and rating. Jordan said the team expects to run a rating call with Moody’s, target an indicative AA3 rating, and market the issue late May with a potential close in June. He noted that short-term interest rates are relatively high, which could make investing proceeds attractive until the majority of expenditures begin in 2026.
District administrator (District administrator) framed next steps: attorneys will review offering documents, a parameters resolution will appear on the May 27 agenda, and if the parameters are met the administrator would be authorized to sign off on the sale and return to the board with final sale results. "We have a plan in place to try to be really flexible and do what's best for the district in terms of timing," Jordan said.
What’s next: the board will see the parameters resolution on May 27; if it passes, the district will proceed with rating calls, attorney review and marketing the issue, with an expected closing date in June when proceeds would become available.
Provenance: topic introduced SEG 656–SEG 672; discussion and Q&A continued through SEG 1100.
Sources: Meeting transcript of the Silver Lake J1 School District board meeting, May 13, 2025.
