Board approves $12.5 million promissory note sale to fund referendum projects

The Hamilton School District board voted to award the sale of $12,500,000 in general obligation promissory notes, the second half of a $25 million referendum financing plan.

A finance advisor introduced by the district described bid results and the financing plan. "TD Securities was the winning bidder at 3.8486%," the advisor said, and noted the blended borrowing cost on the two phases was about 3.99%. The presenter said settlement for this issue is scheduled for April 17, the first interest payment is set for Oct. 1, 2025, and the call date is April 1, 2033. He also said Moody’s reaffirmed the district’s Aa1 rating.

Board members asked about arbitrage rules and whether unspent proceeds could be invested. The finance advisor explained that the district may earn investment returns on unspent proceeds during the three-year spend window but cautioned that any interest earned above allowable limits could require a rebate to the federal government. He added the district can use remaining proceeds to pay down debt if projects complete with funds remaining.

A motion to approve a resolution awarding the sale was made and seconded and passed on a roll-call vote.

The vote authorizes the district to issue the full $12,500,000 that went to bid; board members discussed the district’s ability to issue a lower amount only prior to the bidding process and noted bids were received based on the full amount. The district will confirm wire instructions and monitor project spending timelines to comply with arbitrage requirements.

Next steps include finalizing settlement logistics and continuing regular budget-tracker updates and project cost reconciliation from the district’s weekly status reports.