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Pleasant Valley amends 2025–26 budget and authorizes roughly $12.5M sales‑tax bond sale
Summary
Board approved a mid‑year budget amendment and authorized a sale of approximately $12.5 million in sales‑tax revenue bonds after advisors reported competitive bids; the district said bond proceeds and premium will fund building projects and reduce required cash on hand.
The Pleasant Valley Community School District board voted to amend its 2025–26 certified budget and to move forward with a same‑day sealed bid sale of sales‑tax revenue bonds to fund building additions.
Finance staff told the board the mid‑year amendment was a standard procedure to ensure the district has authority to spend projected revenues and to avoid exceeding certified budget categories. Staff described the amendment as authorizing additional spending to reflect miscellaneous revenues and fund balance adjustments; the public hearing on the amendment was opened and closed with no public speakers and the board adopted the amendment by roll call.
District financial advisors from Piper Sandler walked the board through results of the sealed bid sale. “We got good bids today, multiple bids,” said Garrett Pochop, the advisor presenting the results. He reported that Oenheimer and Company submitted the winning bid and that the district would borrow approximately $12.5 million in sales‑tax revenue bonds. The advisor said the transaction produced premium that increases spendable proceeds and reported a true interest cost near 4.1 percent. After setting aside a debt‑service reserve and covering issuance costs, staff said roughly $12.1 million would be available for project work.
The board approved two resolutions: one directing the sale to the winning underwriter and another authorizing a partial redemption (call) of a portion of the district's 2017 sales‑tax bonds to preserve required coverage ratios in early years of the new debt. Staff noted the prepayment also yields some interest savings on the older bonds.
Why it matters: the authorization provides near‑term funding for Pleasant View Elementary additions and the high‑school CTE project described in the district’s capital plan and preserves debt‑service coverage for the coming years. Board members asked about credit ratings, coverage ratios and the mechanics of underwriting; advisors said the underlying insured rating used in pricing effectively produced the yields shown in the winning bid.
Next steps: district counsel and advisors will finalize documentation; the board will consider a final issuance resolution at a future regular meeting and the district expects to receive bond proceeds on the date announced by counsel.
