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Fort Mill board approves $6.0M bond and authorizes up to $235M in refunding bonds
Summary
The Fort Mill School Board voted unanimously to issue up to $6,025,000 in general obligation bonds for scheduled payments and approved authority to refund up to five prior bond issues with total authorization not to exceed $235,000,000 to allow market-timed refinancing.
At its March 17 meeting the Fort Mill School District Board approved two bond-related actions proposed by district staff.
A motion moved by a board member and seconded at the meeting authorized the issuance and sale of general obligation bonds not to exceed $6,025,000 to provide for two upcoming payments related to past installment purchase revenue bonds and final equipment-acquisition payments tied to prior HVAC projects at Orchard Park Elementary, Fort Mill Elementary and Fort Mill Middle. The board voted aye and the motion carried.
The board then approved a second motion authorizing the administration to provide for the issuance and sale of refunding bonds with authority not to exceed $235,000,000. Staff said this authority would allow the district to refund one or up to five prior bond issues when market conditions are favorable; principal sizes of the candidate issues range from about $6.9 million to $88.7 million. Staff estimated potential savings per issue could range from about $137,700 to $1,774,000, and that combined savings could exceed $4.5 million depending on market timing and which issues are refunded.
Finance staff outlined the district’s broader debt picture in response to board questions: the district has 16 outstanding bond issues with roughly $519,000,000 outstanding (original par approximately $771,000,000) and has paid more than $200,000,000 on those obligations. Staff said the refundings would not extend terms and that, as a working threshold, the district would generally expect at least 2% savings before proceeding with a refunding to ensure issuance costs are justified. Staff also said the district aims to maintain a debt-service millage around 86 mills and that legal debt margin and remaining capacity (about $36,000,000) would not be adversely affected by the approvals as presented.
Both bond motions carried by voice vote (ayes; no recorded nays). Following open session the board moved into executive session and later returned with no actions resulting from that closed session.
