Board hears refunding option that could fund roofing work without raising taxes now
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Summary
A presenter told the Cleveland Public School District board a possible refunding of the district—s 2018 bond could free savings to help pay a proposed $685,000 roofing bond; the board discussed timing, a minimum-savings threshold and incorporating the issue into the district—s LTFM plan.
Aaron, a presenter to the Cleveland Public School District board, outlined a potential refunding of the district—s 2018 school building bond and options to fund upcoming roofing work.
Aaron said the original 2018 bond had an original par of $18,740,000 with about $15,000,002.35 outstanding and roughly $13,550,000 that could be refunded. He explained the refunding window: tax‑exempt refundings can be done 90 days prior to the call date or any time after the 02/01/2027 call date. He told the board that, when the district ran a report in February, estimated interest‑cost savings were just over $880,000, but that rising market rates since then had reduced near‑term opportunities.
Aaron described two practical options: combine the refunding and a proposed $685,000 roofing bond into one sale (saving on issuance costs and structuring the roofing debt over a longer term so refunding savings offset debt service), or issue a shorter roofing bond (a four‑year term) that lowers interest costs over time but delays visible taxpayer savings. He emphasized any levy impact would be reflected in the district—s LTFM plan and noted that state law recently expanded levy authority to allow boards to levy for roofing projects beginning July 1.
Board members asked about timing and logistics. Aaron said the bond rating and market sale process can be completed in a few weeks once the board gives an intent resolution; the intent resolution is nonbinding and is used to place the project on the levy and begin preparatory work. He also recommended the board consider a minimum savings threshold (for example, $500,000) before proceeding so the district does not pursue refunding that yields marginal savings.
Next steps reported: staff would incorporate the roofing estimate into the LTFM plan this summer and the board could adopt an intent resolution when that plan is considered. Aaron said he and district staff would continue monitoring the market and return with updated savings estimates before any final sale.
The board did not take formal action on bonding at the meeting; staff will bring the LTFM plan and any suggested intent resolution to a future meeting for official consideration.
