Board awards $20.6M LTFM bond to TD Financial at 3.50% interest; staff says sale fits capital plan
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Summary
Trustees accepted sale results and awarded a $20.6 million LTFM bond to TD Financial (low bid, 3.50% tax-exempt rate, 11-year term). Staff said the proceeds fit the district's long-term capital plan and the debt schedule aligns with the May referendum tax impact discussed with voters.
The Lakeville Area Schools board approved a resolution to award a $20,600,000 LTFM bond sale to the low bidder, TD Financial, at a 3.50% tax-exempt interest rate and an approximately 11-year term.
Shelby McCoy of Ehlers presented the sale-day report: seven bids were received, market conditions produced variance from the presale expectation but the winning bid and interest rate were within acceptable parameters, and the district's rating was affirmed. McCoy said the interest rate was slightly higher than pre-sale assumptions but noted the interest burden over the term will still allow the district to meet the tax impact presented to voters in the May middle-school referendum.
Directors asked whether the board could refuse to award and re-market at a later date; McCoy and staff said the board could decline but that pulling the sale could harm the district's future market standing and that market timing carries risk. Staff also noted potential refinancing opportunities for later maturities to reduce taxpayer cost.
After questions about term length and interest costs, the board voted to award the sale to TD Financial; the transcript records the motion passing on a 6-0 voice vote. Staff said the sale proceeds and schedule fit the long-term capital plan and the referendum proposals presented to voters.
