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Browerville board authorizes up to $7.565 million in school building bonds under state credit enhancement
Summary
The Browerville school board on Nov. 14 approved a resolution to issue up to $7,565,000 in general obligation school building bonds, to be sold by negotiation to Robert W. Baird & Co., and bound the district to Minnesota's credit enhancement statute (Minn. Stat. §126C.55).
The Browerville Public School District board voted Nov. 14 to authorize up to $7,565,000 in general obligation school building bonds to finance acquisition and improvement of district sites and facilities and to pay bond issuance costs. The resolution, introduced by Member Marty Host and seconded by Jodi Hillmer, passed with all seven members recorded as voting in favor (Keith Noska, Jodi Hillmer, Gram Bentz, Treg Schultz, Kelly Callahan, Marty Host and Bob Bryniarski).
Under the resolution the district will pursue a direct negotiation sale to Robert W. Baird & Co.; the board authorized district staff to obtain fee quotes for an independent municipal advisor and allowed the superintendent or business manager and a board officer to approve the sale provided the true interest cost does not exceed 4.53 percent. Bond counsel Kutak Rock LLP will draft the approving resolution to be adopted at the board's next regularly scheduled meeting or a special meeting after sale approval.
The resolution also binds the district to use Minnesota Statutes, Section 126C.55 (the School District Credit Enhancement Program) to guarantee payment of principal and interest on the bonds while any are outstanding, and it sets procedural requirements for deposits with a registrar and notifications to the Minnesota Department of Education if the district anticipates difficulty meeting payments.
Board documents state proceeds will reimburse prior and future capital expenditures for the project, consistent with Treasury reimbursement regulations, and note that voters approved up to $15,965,000 in general obligation school building bonds at a Nov. 7, 2023 special election; the current authorization is for up to $7,565,000 in one or more series. The board recorded the motion as adopted and authorized district officers to execute required documents and notifications under the statute.
Next steps outlined in the resolution include finalizing sale terms and returning to the board with an approving resolution drafted by bond counsel once the sale is negotiated.
