Fairmont Area Schools details summer facilities work, readies bond pre-sale with estimated 4.65% rate

Tyler Garrison, Fairmont Area Schools’ director of buildings and grounds, presented a multi-site facilities update Tuesday, listing completed and planned work at the high school and elementary buildings and at district athletic facilities. Garrison said crews replaced major hall flooring at the high school, refurbished multiple classrooms and offices, upgraded plumbing and heating components, added 100 feet of counter space for flexible learning areas, and installed new irrigation and scoreboard controllers for athletic fields.

Garrison said the district also addressed multiple boiler-room pumps and valves, replaced entry doors and installed more glass to increase daylighting at the elementary building, repaired glycol leaks, and replaced an elevator control board that had failed over the summer so the elevator would be operational for the school year. He added that three large pumps and other isolation valves were replaced at the elementary boiler room and that several parking-lot and canopy repairs were completed.

Why it matters: Garrison and board members emphasized that while the district uses long-term facilities maintenance (LTFM) aid and targeted donations, many repair and improvement needs exceed available LTFM funding. "There is some associated state aid that helps us with that," a board member noted during the discussion, "however many of the project needs exceed the revenue that we receive from the state of Minnesota." Garrison told the board he has seen costs increase substantially in recent years, and that routine roofing and labor costs have grown since he began in the director role.

Garrison also gave specific counts and plans: about 105 ash trees will need to be removed because of emerald ash borer; the district has removed roughly 45–50 so far and replanted about 70–75 trees of multiple species to reduce future risk. The district plans a tennis-court resurfacing next summer; Garrison said the tennis project will use the majority of next year’s LTFM allocation. He noted some projects were supplemented by donations and local business partnerships, including dugout pads and partial irrigation and scoreboard costs.

MDE review, referendum outreach and bond pre-sale: Superintendent Trade told the board the district submitted referendum project descriptions to the Minnesota Department of Education (MDE) and that the commissioner’s review and comment letter will be published in the Fairmont Sentinel as the district’s official notice. Trade also summarized outreach efforts tied to the referendum, including radio spots, community presentations and a district website, fairmontbond.com, for information.

Shelby, representing the district’s financial adviser (listed in the transcript as "from Aaylor"), presented a pre-sale report on proposed general-obligation facilities-maintenance bonds that would layer voter-approved debt on top of existing district obligations. The adviser said the portion of the project discussed would carry a roughly $1.4 million levy impact reflected in levy planning documents and that the current market estimate for a sale was about 4.65% interest (the presenter said initial assumptions were closer to 5%). Shelby said national underwriters typically bid on Minnesota school debt, that the state credit-enhancement program supports marketability, and that bond maturities are structured with larger block sizes to attract competitive bids.

Shelby described a call/refinance structure roughly eight to ten years out to give future boards flexibility to refinance or defease the bonds if market conditions change. The adviser said the schedules presented were designed to balance the district’s debt-service capacity, the useful life of assets and market demand for different maturities.

What’s next: The MDE letter appears in the packet and will be published in the Fairmont Sentinel as the district’s formal notice; the board will continue referendum outreach and proceed with timelines for bond issuance and levy planning if voters approve the referendum. The board’s next meeting was scheduled for Sept. 23.