School board directs loan applications and bank solicitations after bus barn cost rise

The Columbus Public Schools Board voted to pursue financing options for a new bus barn after the superintendent said construction bids are likely to exceed earlier estimates and could total roughly $2.5 million to $3 million. The board directed the superintendent to apply to the state Board of Investments for an intercap loan and to solicit competitive proposals from local banks.

Superintendent said, "my guess on this is gonna be 2,500,000 to 3,000,000," and urged the board to start the loan application process so the district would be ready if bids come in high. He told trustees that the Board of Investments holds right of first refusal on the project, currently offers a variable interest rate near 5 percent, and would consider the district's application at its February meeting.

Trustees also approved directing the superintendent to solicit proposals from local banks, including First Interstate, Yellowstone and Stockman, to see if any could match or beat the intercap terms. The superintendent said he had drafted a solicitation prepared with the school board association lawyer and recommended soliciting multiple banks to keep the process competitive.

On potential repayment sources, the superintendent noted several options: a transportation fund levy (allowed by law for bus facilities), revenue from local metal-mining activity (he cited roughly $250,000 in recent receipts between June and November), and use of district reserves. He emphasized trustees would weigh funding sources before final loan acceptance.

Board members voted to approve both the intercap loan application and the solicitation of local bank proposals. Next steps: the bid opening for the bus barn is scheduled for December 16, after which trustees will review bid tallies and return a recommendation to the board.