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Bond counsel, financial adviser outline options to cover $4.5M ag-farm shortfall
Summary
Bond counsel and the district’s financial adviser told trustees the district has bond interest and reimbursable expenditures that could reduce the funding gap for the new ag facility; staff detailed amounts and the allowable reimbursement window under a Nov. 2023 resolution.
At a March board workshop, bond counsel Ricardo Perez and financial adviser Angel Magallanes walked trustees through financing options to address an estimated $4.5 million cost overrun on the district’s new agricultural facility.
Perez said the district initially identified approximately $9 million for the project but that the bids were roughly $13.5 million. "You have sources to fund that shortfall," he said, explaining the district could use interest earned on bond proceeds or repurpose Proposition A/B/C funds. Perez also reviewed a reimbursement resolution the board adopted Nov. 16, 2023, which allows the district to reimburse qualifying prior expenditures within a defined look‑back period.
Magallanes said funds from the district’s investment pool generated elevated interest when yields were higher and conservatively projected additional interest of roughly $4.8 million while projects progress; he cautioned, however, that construction scheduling and campus disruption limit how fast drawdowns can be accelerated. Staff reported they have identified roughly $2.829 million in expenditures that could be reimbursed from bond proceeds, and listed continuing work to validate eligible expenses.
The board asked staff to provide full supporting documentation for the financial figures and to explain the drawdown schedule before final contract execution. Trustees emphasized transparency and that any use of bond interest or reimbursements must comply with the resolution’s parameters and applicable state law.
