Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Board approves parameters for up to $136.2M in referendum debt, citing tax-impact safeguards
Summary
The board approved two related resolutions allowing the sale of up to $136,175,000 in general obligation promissory notes (including up to $105M in one tranche and $42M taxable in another), with presenters saying the structure minimizes arbitrage risk and aims for a 10-year retirement of the debt.
The Green Bay Area Public School District Board of Education approved parameters for the sale of general obligation promissory notes tied to the second phase of a voter-approved referendum.
A presenter described a financing plan that divides the borrowing between taxable and tax-exempt portions to reduce the district's arbitrage exposure and allow flexibility to shift amounts at the time of pricing. The resolution set a not-to-exceed amount of $105,000,000 for general obligation promissory notes and a total cap of $136,175,000 including taxable notes; a second related resolution set a taxable portion cap of $42,000,000 within the overall limit.
Officials said a portion of the prior referendum debt ($14,000,000 plus approximately $9798,000,000 this time) is subject to IRS spend-down requirements, and the use of taxable notes in part is intended to avoid arbitrage constraints. Presenters said the plan targets paying the debt in full over 10 years and allows staff and advisors to allocate more into taxable or tax-exempt issues at pricing depending on prevailing rates.
Both resolutions were approved by recorded online vote with all board members voting in favor during the meeting.
The board's action sets parameters for subsequent pricing and sale; final structure, interest rates and allocations between taxable and tax-exempt issues will be determined at the time of sale and reported to the board.
