District 11 weighs $775 million bond, tax options and a plan to free money for teacher pay

Colorado Springs School District No. 11 trustees spent a work session reviewing financing options for a proposed $775 million bond package and asked staff for guidance on wording and tax parameters to shape a future ballot question.

The discussion centered on three linked choices: the bond’s maximum mill levy request (presented to the board as 7.75 mills), how issuances would be staged (staff suggested an initial series of roughly $350 million with later series rather than selling all debt at once), and the amortization schedule (20, 25 or 30 years) that affects annual taxpayer cost versus total repayment.

Why it matters: staff said repaying existing certificates of participation (COPs) with bond proceeds would free recurring general‑fund dollars that could be redirected to teacher compensation. Staff and an oversight committee reported unanimous support for the concept of reprogramming capital dollars to recurring salary increases if the legal steps and sequencing allow it.

An underwriter from the district’s financial team explained how assessed value and Colorado’s assessment rules determine mill‑levy impacts, and provided illustrative math so trustees could compare trade-offs. The presenter used per‑$100,000 examples to show how mills translate into household costs and discussed conservative assumptions for interest rates and underwriting premiums in the current market.

Board members pressed on details: whether charter schools could receive bond dollars (staff and Council Crawford said charters may use bond funds for capital only when they own or occupy district buildings; rented facilities are ineligible), how project lists would be shared publicly, and how to communicate impacts to residential and commercial taxpayers.

On program priorities, staff outlined large projects and targeted work across the district, including a recommendation to replace Holmes Middle School because facility data suggest reinvestment would be more expensive than rebuilding, and continued investments at Jenkins Middle, Palmer High and Mitchell High. Staff also described a plan to allocate at least a baseline amount for HVAC and other repairs across campuses so every school sees investments.

On teacher pay, staff laid out an example calculation tied to COP repayment: the presentation said repurposing about $15 million of capital funds could translate into roughly a $10,000 recurring increase per teacher, contingent on final legal review and board policy decisions. Staff and the superintendent emphasized the need to follow required steps — including bond counsel review and a formal board resolution describing intent — before promising specific salary changes.

Trustees indicated a preference for minimizing near‑term taxpayer impact while balancing long‑term repayment costs; several members said they were leaning toward options that reduce the annual cost even if total interest paid is higher. Staff said they will use the board’s guidance to refine ballot language, amortization choices and the sequencing of issuances and return with a draft resolution and public materials.

The work session closed with staff committed to posting project plans on the district website and to preparing clear, public comparisons of options for the board’s next review.

Quotes and attributions in this report come from district staff and the underwriter during the public work session; where speakers were unnamed in the transcript, the article uses role labels (for example, “staff” or “the presenter”).

Next steps: staff will return with refined ballot language, the project list and a proposed resolution reflecting the board’s guidance; no formal vote was taken at the work session.