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District finance staff outline plan for special‑obligation bond to finish high‑school construction
Summary
Finance staff briefed the board on a planned special‑obligation bond (roughly $20 million estimate) to cover remaining construction draws on the high‑school project, explaining the structure, collateral (permanently affixed assets), and an expected April–May request for board authorization once exact dollars are known.
District finance staff briefed the board on financing options to complete the high‑school construction timetable and described a likely special‑obligation bond that would cover remaining draws.
Mr. Love summarized why the bond is needed: construction costs and final vendor invoices will exceed current cash on hand, and the district would use a special‑obligation bond to bridge the shortfall. "We know it's be approximately $20 million based upon how we had anticipated the overall construction and financing," he said, adding that the exact amount will be determined before a formal board resolution is requested in April or May.
Structure and limits: Mr. Love said the special‑obligation bond would not pledge the district's full faith and credit; instead, it would be secured by permanently affixed assets (examples given: HVAC and certain water/sewer components). He described that the bond's payment schedule will need to be integrated with existing 8% borrowing so the combined debt service remains affordable.
Procurement and timing: Staff said the district will competitively bid any merged debt issuance and will return with a resolution when costs are finalized. "We will need to ask you to approve a resolution at the time we know the exact dollars at that point in time to allow us to proceed borrow the money," Mr. Love said.
Fiscal context: The briefing framed the special‑obligation bond as a cash‑flow management tool to finish construction amid inflation and supply‑cost pressures. Staff emphasized they are not asking for additional debt beyond current plans today and that the action is intended to allow completion and timely payment of final construction invoices.
Next steps: Finance staff will refine cost estimates and return to the board with a recommended resolution in the April–May window once draws and final invoices are clear.
