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School District of Marion board sets parameters to sell up to $13.5 million in promissory notes to fund facility projects
Summary
The School Board unanimously adopted Resolution No. 2025-1 to authorize parameters for issuing up to $13,500,000 in general obligation promissory notes to finance referendum-approved facility improvements, and approved a bond proceeds management services proposal from PMA Securities, LLC.
School Board Vice‑President Tiffany Krueger presided over the Jan. 13, 2025 meeting in the Marion Elementary School Library Media Center where members voted 8–0 to adopt Resolution No. 2025‑1, establishing parameters for selling up to $13.5 million in general obligation promissory notes to fund two referendum‑approved projects.
The resolution authorizes borrowing to pay all or part of two previously approved projects: (1) district‑wide capital maintenance, building infrastructure and systems improvements and accessibility updates at the Elementary School including a secure entrance and office, and (2) construction of an addition and renovations at the Elementary School to combine Elementary and Middle School functions, plus furnishings and equipment. The minutes record that the referendum results (Nov. 5, 2024) showed voter approval of both initial resolutions cited in the document.
Why it matters: the notes will provide near‑term cash to begin or advance construction and maintenance work that voters approved in November, with debt service pledged to a direct annual irrepealable tax levy as described in the resolution.
Board procedure and vote: Bruce Zillmer moved adoption of the resolution and George Graper seconded; the motion carried by roll call vote with eight ayes and one absence (John Schwartz). The Board also approved a Bond Proceeds Management Services Proposal from PMA Securities, LLC during the same meeting.
Key financial parameters recorded in the resolution include a maximum aggregate principal of $13,500,000; a minimum purchase price not less than 97.00% of principal; purchaser compensation and issuance costs not to exceed 3.00% of principal (split up to 1.50% for Purchaser compensation and up to 1.50% for costs of issuance); and a maximum true interest cost of 5.00% (the Board delegates final approval of exact maturities, interest rates and redemption provisions to designated Authorized Officers via an Approving Certificate). The resolution also includes a maturity schedule (first payment Sept. 1, 2025, and final maturity March 1, 2045) and detailed debt service fund and investment/antidiscount language.
Officials and next steps: the resolution delegates authority to the District President and District Clerk to accept a purchase proposal and to execute closing documents if the proposal meets the resolution’s parameters. The district’s business office reported readiness activities related to bond issuance, including a ratings call with S&P and engagement with outside counsel and financial advisors. The Board scheduled a special schematic design review meeting for Jan. 27 to share drawings related to the projects.
What the resolution requires going forward: issuance is conditioned on final parameters approved by the Authorized Officers; the district pledges to comply with federal tax provisions cited in the resolution and to provide any continuing disclosure required by SEC Rule 15c2‑12. Any buyer, fiscal agent and insurance arrangements must conform to the terms authorized by the Board.
The Board adopted the resolution as part of the Jan. 13 meeting; the minutes include the full resolution text as an attachment and record that the resolution was declared adopted.
