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School board adopts FY2027 budget and approves Series 2026 bond sale; refunding saves district ~$4.67 million
Summary
The Cherokee County School Board unanimously adopted the FY2027 budget and millage rate and approved a competitive sale of Series 2026 general obligation bonds to fund capital projects and refund prior debt. Independent adviser Davenport & Company reported net present-value savings of about $4.67 million from the refunding.
At its April 23 meeting the Cherokee County School Board adopted the superintendent's recommended FY2027 final budget and ad valorem property tax millage rate after required public hearings.
Ken Owen, the district’s finance lead, told the board that through March 31 the general fund had received $492 million in revenue (about 80% of expected revenue for the fiscal year) and operating expenditures were $418 million (under 70% of budget), noting the district was “well within budget” for the general fund.
On the same agenda the board considered and approved a competitive public sale of Series 2026 general obligation bonds. Davenport & Company, the board’s independent financial adviser, summarized credit rating agency reports and sale results: underlying ratings were affirmed and the transaction used Georgia’s state-aid intercept program to secure an elevated rating. The new-money sale (approximately $90 million) drew nine bids and JP Morgan provided the lowest true interest cost (TIC) for that portion. A separate refunding sale (about $40.5 million of refunded par) was awarded to a different bidder.
Doug Gart of Davenport & Company told the board the district achieved $4.67 million in total savings from the refunding on a net-present-value basis — a savings the adviser said accrues to taxpayers. “The total savings was $4.67 million,” Gart said.
Board members praised district finance staff for conservative budgeting and transparent reporting, and they approved the bond resolution and purchase agreement unanimously. The board was told proceeds will be used to refund 2018 bonds and to fund voter-approved capital projects; escrow and closing steps were scheduled in May with closing in late May 2026.
The board also heard that the building fund balance was $74.9 million (from SPLOST receipts and bond proceeds) and the debt-service fund held about $43.1 million; the next debt-service payment was noted as $30.3 million due Aug. 1.
The FY2027 budget and bond authorization were approved without recorded dissents.
