Board sets parameters to sell roughly $118.6 million in SAVE‑backed bonds for five school projects

The Cedar Rapids Comm School District Board of Education on March 30 approved a resolution establishing parameters to sell approximately $118,590,000 in school infrastructure sales, services and use tax revenue bonds (Series 2026) to fund five capital projects: Jefferson, Washington, Harrison, Van Buren and Hoover.

Staff explained the bonds will be repaid from SAVE, the state’s dedicated 1¢ sales tax for school infrastructure, and are not backed by property tax. Staff said contracts are already in place for the listed projects and that the approved resolution sets sale parameters; a bond sale is scheduled for April 7, after which staff will return to the board with firm interest rates and a final resolution for board approval.

The board also approved an engagement letter for bond counsel (Oller & Cooney PC), authorized redemption of the district’s Series 2019B refunding bonds and approved a preliminary official statement related to the sale. In addition, the board approved an amended School Budget Review Committee request correcting fiscal‑year labels for special education administrative costs for the 2026–27 school year.

Board members asked whether proposed changes to SAVE by the legislature could affect the district’s repayment plan. Staff said the district has committed to the projects and that, if SAVE were changed materially, the district would need to restructure bonds; staff cited ongoing statewide negotiations that included extending SAVE to 2070 to avoid defaults in other districts.

All motions on the bond parameters, redemption and preliminary official statement passed by voice vote. Staff told the board that, following the April 7 sale, the board will see final financing details and a formal resolution to accept the award and complete bond issuance.

Next steps: bond sale on April 7; staff to present final bond structure and official documentation for board approval.