Madison County Schools to issue $75 million in bonds to fund capital projects

During the budget hearing Hunter Smith told the board the district is in the middle of a bond issuance expected to close before the end of the fiscal year that will bring an estimated $75,000,000 into district coffers; about $25,500,000 will reimburse prior capital expenditures and roughly $50,000,000 will be placed in the fund balance for fiscal-year 2027 use.

Smith said the new debt will increase annual operating debt service by about $4,500,000 but highlighted steps taken to contain borrowing costs: “we saved about $4,000,000 over the course of a 30 year bond” by shopping underwriters, and refinancing the 2016 bond should yield an additional $1,000,000–$1,200,000 in net savings over seven years. The board was told the bond sale date is scheduled and that the board will need to approve pricing afterward.

Board members asked clarifying questions about timing and approvals; staff said the sale is expected to be completed and the board will convene to approve pricing immediately afterward. The bond proceeds are intended to fund an identified capital plan and reduce the need to draw down reserves for projects already underway.