Waterloo board moves to engage underwriter for bond sale as residents warn of procurement risks

The Waterloo Community School District Board on Aug. 12 approved a superintendent recommendation to engage DA Davidson as underwriter and move forward with steps to sell bonds to fund the district's high school project, but several public commenters urged the board to strengthen procurement safeguards and questioned whether the financing meets Iowa statute.

At the meeting's public-comment portion, Rich Curbach, a Waterloo resident who said he served on the district's CTE advisory board, called for stricter contracting protections, arguing the district should use construction-manager-at-risk or post-qualification safeguards rather than relying on lowest-bid general contractors. "This one project to leave up to a general contractor to oversee it without much better protections for the taxpayer and for the district" would, he said, "leave the door wide open to abuse."

A second resident who identified an address at 124 Amity Drive read multiple sections of Iowa law and argued the proposed project would exceed statutory debt and petition thresholds. He said, according to his reading of the code, "1.25% of 3.89 billion is 48.6 million; this $165 million school project exceeds that," and added his calculation that a 20-year note at 5% would place first-year debt service at about $16.5 million, which he said exceeds a cited $15.75 million cap. The speaker urged the board to put the measure before voters rather than proceed without a referendum.

District staff, represented in discussion by a staff member identified as Jeff, told the board the next step is preparatory: the engagement letter with DA Davidson would allow underwriters to prepare proposals and contact potential investors. Jeff said the plan was to take an initial tranche to market in August — "about $4.5 million" — with an anticipated sale in late September and additional bond sales in 2025–2027 as the project progresses. The transcript also contains a reference to a larger 2024 series figure of $14.5 million; staff described the multi-year approach as funding the project in phases.

Board members approved the superintendent's recommendations by voice vote; the chair declared the motion carried and no opposing votes were recorded in the meeting audio. The board did not take further formal action on procurement safeguards during the meeting; public commenters had urged consideration of post-qualification or other contract protections before major project contracts are awarded.

Next steps described at the meeting include verification of petition signatures with district legal counsel and the Secretary of State's rules, continued work with financial advisors and underwriters, and further board votes as bond tranches are prepared and sold.