District plans major bond sale to boost school funding

During a recent government meeting, district officials discussed the financial plans surrounding an upcoming bond sale, led by Eric Harrigan from RBC Capital Markets. The meeting highlighted the district's strong tax base growth of over 7% this year, which is expected to facilitate the retirement of debt and potentially increase future bond election sizes.

Harrigan outlined the district's current financial landscape, noting that the district has already issued $25 million of the $50 million in general obligation bonds authorized by voters in November 2021. An additional $12.5 million is set to be issued this fall, with another $12.5 million planned for next year, which will exhaust the previously authorized amount. The anticipated bond election next year is projected to seek $65 million, maintaining the current tax rate of $4.60.

The discussion also touched on the district's debt capacity, which is capped at 6% of assessed valuation. Currently, the district is utilizing about 60% of this capacity, leaving room for future borrowing. Harrigan indicated that the upcoming bond sale would be conducted through a public competitive process, with the sale expected on September 25, following a Federal Reserve meeting that may influence interest rates.

Board members raised questions regarding the implications of these financial plans on projected building needs, particularly concerning the modernization of schools. Superintendent Ruiz confirmed that the increased bond amount would significantly aid in addressing these needs, including the ongoing construction at Mayfield High School, which is estimated to cost around $160 million for all phases.

Overall, the meeting underscored the district's proactive approach to managing its financial resources and addressing educational infrastructure needs, setting the stage for future growth and development.