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Columbia CUSD 4 board approves roughly $33 million in bonds to fund new high school
Summary
The board approved a resolution to issue and sell approximately $33 million in funding bonds to finance the district's new high school. A financial advisor said the bonds priced with an interest rate near 3.94% and strong investor demand, and the district will close the sale in October.
The Columbia CUSD 4 Board of Education approved a resolution to issue and sell approximately $33 million in funding bonds to finance construction and completion of the district's new high school.
A financial representative briefed the board on market demand, pricing and structure. The presenter said the bonds were sold into strong investor demand that allowed the district to lower interest costs; the transaction was priced that day and the representative reported an effective interest rate of about 3.94% with an estimated savings of roughly $40,000 in debt service from lower-than-expected rates. The presentation noted a planned $29 million draw and described final-maturity and optional-call features discussed with the board.
Board members moved and seconded the resolution. On roll call the measure carried with five members voting yes: Adam Himkin, Andrea Corey, Greg Meyer, Lisa Schumacher and Tyson Search; two members (Norine Friedrich and Kelly Moyer) were absent. The board's motion approved the resolution "providing for the issue and sale of approximately $33 million of funding bonds of the district and for the levy of taxes to pay the funding bonds." The presenter said the district expects to close the financing in October.
During the presentation, the financial representative described several technical details: use of AAA MMD benchmark curves to time the sale, investor oversubscription (demand outpacing available bonds), small basis-point reductions achieved across maturities, an estimated $40,000 savings in debt service from pricing advantages, and an interest-rate environment that allowed a shorter amortization scenario. The representative also noted an option to refinance on an advanced or taxable basis in future years depending on market conditions.
Board members thanked staff and the advisor; the board chair called the bond approval an important step toward completing the new high school project. The vote closes a multi-year financing plan; the meeting record references Stifel as bond counsel assisting the district.
No public comment on the bond resolution altered the approval; subsequent agenda items moved on to procurement and facility updates.
