Pipestone Area School Board authorizes up to $1.085 million in bonds to pay for roofing projects

The Pipestone Area Schools Board of Directors voted unanimously April 27 to amend its earlier bond authorization and permit the issuance of General Obligation Facilities Maintenance Bonds, Series 2026A, in a principal amount not to exceed $1,085,000 to finance roofing projects outlined in the district’s revised ten‑year facility plan for fiscal year 2027.

The resolution, introduced by Member Brad Carson and seconded by Member Daphne Likness, replaces a prior not‑to‑exceed authorization of $975,000. The minutes record the board’s determination that the district’s total indebtedness as of April 1, 2026 was $22,580,000. The board authorized PMA Securities, LLC to act as the district’s independent municipal advisor and capped the bonds’ true interest cost at 5.00% for purposes of approving a sale.

The resolution requires that the revised facility plan and the bond issuance be submitted to and approved by the Minnesota commissioner of education as required by Minnesota Statutes. It also includes provisions to participate in state credit enhancement under Minnesota Statutes §126C.55 in the event of a potential payment default and directs district officials to follow federal reimbursement rules in Internal Revenue Service Regulation section 1.150‑2 when allocating bond proceeds to prior project expenditures.

The board’s action delegates authority to the superintendent or business manager and any board officer to approve the sale of the bonds and to execute a bond purchase agreement, provided the aggregate principal does not exceed $1,085,000 and the true interest cost does not exceed 5.00%. The minutes state the authorization will expire if no sale approval and purchase agreement have been executed by December 31, 2026. The board also authorized preparation and distribution of preliminary and final official statements and directed staff to take steps needed to comply with SEC Rule 15c2‑12.

Votes at a glance • Bond resolution (amend and restate Series 2026A, authorize up to $1,085,000): adopted 7–0 (Likness, Carson, Wiese, DeBates, Hiniker, Taubert, Fruechte). • Resolution accepting donations (wellness/athletic funds): adopted 7–0 (Wiese moved; Hiniker seconded). Donors listed in minutes: Christ the King Lutheran $100; Pipestone Publishing $1,425; Jasper Lions Club $200. • Resolution accepting donations to high school activities (robotics): adopted 7–0 (Wiese moved; Hiniker seconded). Donors listed: A & S Drugs, LLC $50; Gene Haas Foundation $3,000. • Routine approvals: consent agenda, treasurer’s report (cash balance $7,867,118 for month ended March 31, 2026), MN Trust 2023A bonds treasurer’s report (cash balance $734,378.15), regular bills ($421,897.48) and high school activity bills (recorded in minutes as $80,088.83) — all motions carried unanimously.

Why it matters The board’s amendment raises the district’s not‑to‑exceed bond authorization for facilities maintenance to fund roofing work identified in its facility plan, enabling staff to finalize financing and proceed with contracting once state approvals and sale conditions are met. The resolution also includes federal tax compliance and state credit‑enhancement procedures that could affect the timing and security of payments.

What’s next District officials, in consultation with PMA Securities and bond counsel, are authorized to solicit proposals, finalize official statements and, if sale terms meet the board’s limits, approve the sale and later ratify the sale at a board meeting. The minutes were approved and dated by the board May 18, 2026.