School committee authorizes up to $162 million in short-term borrowing for construction project
Loading...
Summary
The Bristol Warren Regional School Committee voted April 13 to authorize up to $162 million in general obligation bond anticipation notes to continue the district’s construction program and appointed underwriting teams to manage the sale.
The Bristol Warren Regional School Committee voted April 13 to authorize temporary borrowing of up to $162,000,000 through general obligation bond anticipation notes to finance the district’s ongoing construction program.
The measure, introduced by district counsel and explained by municipal adviser Steve Massaroni of PFM, authorizes the district to issue note series in 2026 (Series 1) to pay off approximately $90 million in existing notes and provide approximately $70 million in additional proceeds for continued construction draws. Massaroni told the committee the sale team solicited nine proposals and recommended Raymond James as senior manager with Ramirez as co‑manager; Raymond James’ fee and spread were among the lowest received. “We received nine proposals,” Massaroni said. “Raymond James had the lowest fee that we would pay and they have a lot of experience in short‑term notes.”
District counsel explained the sequence the board was approving: (1) authorize the borrowing, (2) appoint an underwriter team, (3) allow preparation and distribution of an official statement to market the notes, (4) authorize entry into a note purchase agreement, and (5) proceed to a closing within the next 45–60 days. Counsel added that the board also authorized a reimbursement resolution allowing temporary use of general fund dollars for construction draws prior to the financing closing.
Committee members asked about the estimated interest rate and contingency planning. Massaroni said the one‑year notes were indicative at about 2.5% at the time of the presentation and that rates are subject to change. Counsel and staff described the process if construction costs rose beyond the authorized amount: the district could return for a subsequent authorizing resolution or use existing contingency/reimbursement provisions until permanent financing is placed next year.
A motion to adopt the resolution, appoint Raymond James and Ramirez as the underwriting team, and authorize preparation of preliminary and final official statements carried unanimously.
Next steps: staff, the municipal advisor and bond counsel will finalize the preliminary official statement, solicit bids at the note sale, and close the short‑term financing in the coming weeks.
