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Bettendorf board approves resolution to sell about $31.82 million in sales-tax bonds amid legislative uncertainty
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Summary
The board approved a resolution setting a May 28 sale date and authorizing the preliminary official statement for approximately $31,820,000 in sales-tax bonds. District advisors said the accelerated sale responds to pending state changes that could reduce local sales-tax infrastructure revenue.
The Bettendorf Community School District board on April 23 approved a resolution setting a May 28 sale date and authorizing the preliminary official statement for about $31,820,000 in sales-tax bonds.
David Farmer, the district treasurer (speaker 1), explained the district and several others opted to accelerate bond sales because pending state legislative proposals could change how sales-tax infrastructure revenue is distributed or require elections for sales-tax bonds. "The amount that we will ask bidders to bid on is 31,820,000," Farmer told the board, and he urged the district to close the sale before June 30 to avoid potential legislative changes that could complicate borrowing.
Farmer walked the board through sources-and-uses worksheets and an amortization schedule showing principal payments beginning in 2030 and projected debt-service coverage roughly in the 1.25–1.5 range once earlier bond principal is paid. He said the proposed issuance would also be used to pay off about $3.3 million of 2018 bonds now to keep near-term coverage above covenant thresholds.
The presenter cautioned that some legislative proposals discussed at the Statehouse could divert 25–30% of sales-tax revenue to a Property Tax Equity Relief Fund; while he said such changes would likely not make the district unable to meet debt service, they could reduce funds available for buses, technology, deferred maintenance and other cash-funded projects.
The resolution bundled three approvals: (1) fixing the sale date of May 28, (2) approving electronic bidding procedures (via Parity), and (3) approving the preliminary official statement to solicit bids. Board members were shown illustrative cash-flow worksheets and a timeline that calls for presenting actual bids to the board the day of the sale and completing closing paperwork in June so funds arrive by June 30.
The board moved, seconded and recorded a roll-call vote to approve the resolution.
