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Tipton R‑VI board formalizes agreement with LJ Hart to explore no‑tax‑rate‑increase bond
Summary
The Tipton R‑VI board voted to accept an engagement agreement with underwriter LJ Hart to analyze and, if warranted, market a potential no‑tax‑rate‑increase bond issue in 2027. Presenters said the district could pursue up to about $8 million while keeping the debt‑service levy stable.
The Tipton R‑VI Board of Education voted to formalize an engagement agreement with municipal underwriter LJ Hart to prepare for a possible no‑tax‑rate‑increase general obligation bond in 2027.
Courtney, representing LJ Hart, and Connor Wood walked trustees through five‑year assessed‑valuation trends, conservative growth assumptions and cash‑flow schedules. They told the board a defeasance and related prepayments have stabilized the debt‑service fund and that a voluntary prepayment of $330,000 could save “just over $105,000” over time. Courtney said the defeasance reduced 2025–26 balances by about $1.638 million and that action helped smooth levy volatility.
According to the presentation, legal bonding capacity is calculated at about 15% of assessed valuation; after subtracting outstanding indebtedness and assumed cash on hand the district could, in sample calculations, pursue roughly an $8 million no‑tax‑rate‑increase bond. LJ Hart shared illustrative repayment schedules, noted state law limits 20‑year maturities for bonds, and described a typical reoffering premium scenario (an example premium of roughly $370,000) that could cover issuance costs and a construction deposit.
The board’s vote approved the engagement agreement that would make LJ Hart the district’s underwriter if the board later decides to sell bonds; Courtney said the firm will not bill the district unless bonds are sold. The agreement will let LJ Hart perform tasks including projections, rating‑agency applications, marketing and closing logistics.
Trustees emphasized that approving the agreement does not mean the district has decided to put a bond question to voters. Several members urged broad stakeholder outreach — including inviting previously vocal opponents into planning discussions — before any public campaign. One trustee summarized the district’s position, saying the arrangement could allow the district to “do something for the school… and we won't change taxes” if structured as a no‑tax‑rate‑increase proposal.
Next steps include continued financial analysis, community engagement and scheduling work with LJ Hart to prepare materials if the board elects to proceed toward a 2027 ballot question.
