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Finance director outlines tax-neutral plan for $44.56M package; board asks for clearer charts
Summary
Finance director Andy Krogstead told the school board the recommended financing mix — LTFM, a lease-purchase COP for part of the work, and reserve use — can be modeled as tax-neutral; board members requested updated tax-impact charts before the Aug. 4 vote.
Andy Krogstead, the district’s director of finance, walked the board through a financing plan July 21 that uses multiple sources — long-term facilities maintenance (LTFM) funding, a lease-purchase for the RAIL addition, committed and unassigned fund balances, and proceeds from sale of the Firdell Building — to pay for the $44.56 million package.
Krogstead told the board his team worked with municipal advisers Ehlers to structure borrowing and cash use so the proposal would be “tax neutral” under modeled assumptions, and said avoiding capital facilities bonds would save roughly $880,000–$900,000 in interest. He also emphasized the district’s models use conservative interest-rate assumptions and that market valuation changes could still affect taxpayers. “This plan is a tax neutral plan,” he said, adding that market valuation and future bond issuances are variables outside the district's direct control.
Board members asked for clearer, accessible charts and for updated projections that incorporate the proposed certificates of participation (COPs) and the LTFM schedule. Krogstead agreed to supply a revised chart for the next meeting showing how the levy and debt-service schedule are expected to change under the recommendation.
