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Dowagiac board accepts clean audit, approves 2026 refunding bonds and construction change orders
Summary
The Dowagiac Union School District board accepted a clean 2024–25 audit showing a reduced pension liability and modest fund-balance gains, approved a resolution to issue 2026 refunding bonds expected to save about $2.4 million, and authorized change orders for a high-school welding lab and a district facilities assessment.
The Dowagiac Union School District board on Tuesday accepted a clean audit for the 2024–25 fiscal year, approved a resolution to issue 2026 refunding bonds and approved several construction and planning items.
During an auditor presentation, Tyler Baker, identified in the meeting as a senior manager at the auditing firm, told the board auditors issued an unmodified (clean) opinion on the district’s financial statements and the separate single-audit compliance work. The auditors reported no significant deficiencies or material weaknesses in internal controls and no findings for the major federal program tested (child nutrition). Baker said the district’s portion of net pension liability decreased from about $37.1 million in 2024 to $26.6 million in 2025, while the district’s share of OPEB (other postemployment benefit) assets increased to roughly $4.5 million.
Board members moved to accept and approve the 2024–25 fiscal year audit after the presentation; the motion passed on a roll-call vote as recorded in the meeting.
In the same meeting the board authorized a resolution delegating the issuance and sale of Dowagiac Union School District 2026 refunding bonds. District staff and the auditor described roughly $39 million of outstanding 2015 and 2016 bond debt that the district intends to refinance. The board was told refinancing could deliver approximately $2.4 million in present-value savings to local taxpayers across the life of the refunded debt. The motion to approve the refunding resolution was moved and carried.
Separately the board approved three change orders for the high-school welding lab. Superintendent remarks and the project team said two of the principal costs were a required ventilation/exhaust system for the newly created space (a state requirement for new spaces) and separate electrical feeds for each welding hood/booth. The transcript records the change-order total as read aloud in the meeting as “$22,52” (numeric transcription unclear); the board approved the recommended change orders as presented. District staff said architects and contractors will continue to pursue credits or adjustments where available.
The board also approved a contract with Inform Architecture and Ignite to perform a districtwide facility-assessment and utilization study. The superintendent said the work will be paid from a state grant award (the meeting referenced a $100,000 grant award) and the contract amount presented to the board was $29,000; the motion carried.
Board motions on the consent agenda and the audit acceptance were recorded and carried; the meeting then moved into closed session for student-discipline matters.
What’s next: The district will proceed with the refunding process and the facilities study; staff indicated the refunding structure and final terms will be brought forward under the delegated authority approved by the board.
