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Scott County School Board approves financing plan for two elementary additions
Summary
The board approved a resolution authorizing a financing package to support additions at Weber City and Yuma elementary schools after a Davenport & Company representative outlined a roughly $5.5 million lease-revenue bond plan with a 20-year structure and refinancing options.
The Scott County School Board on Oct. 7 approved a financing resolution to support construction additions at Weber City and Yuma elementary schools.
David Rose of Davenport & Company presented the recommended financing option, explaining the Economic Development Authority would issue lease-revenue bonds in an amount of about $5.5 million to pay for the projects. Mr. Rose told the board the package was structured as an approximately 20-year fixed-rate financing with two annual payments and included a refinancing opportunity after seven years if market rates were lower.
Rose said the structure gives the county and the school system flexibility: once bonds are issued, the authority would lease the property back to the county and assign lease rights to the lender to secure the bonds. The resolution presented at the meeting authorized school-board officers and the superintendent to execute and deliver the necessary documents and limited the obligation of the authority to rent payments from the county.
The board moved to adopt the Capital One Public Funding, LLC resolution after questions from board members; the motion carried unanimously. Chair David Templeton and Vice Chair Steve Sallee joined the superintendent and Davenport & Company in briefing the school board on administrative steps required under the lease and assignment approach.
Next steps listed in the resolution include final execution of the ground lease and lease agreement, recordation where appropriate and, if legal counsel approves, continued coordination with bond counsel and the county. The board's approval authorizes the school's officers to sign the documents necessary to complete the transaction under the terms included in the proposal.
The board packet includes the full text of the resolution and related legal documents in the meeting appendices.
