Board approves amended bond refunding resolution aimed at taxpayer savings; district may add 2016 issue

The Burnsville Public School District Board of Education on March 27 adopted an amended and restated bond refunding resolution to allow the district to refinance callable general obligation bonds and pursue debt-service levy savings.

Stacy Sovine, executive director of administrative services, and Matthew (Matt) Hammer, senior municipal advisor with Ehlers, presented the plan and urged the board to authorize flexibility to refund portions or all of identified issues when market conditions are favorable. Hammer said the district previously authorized a refunding process last fall but paused when market conditions worsened; improved conditions prompted the renewed effort.

"When the opportunity is there to save our taxpayers money, we want to jump all over that as quickly as we can," Sovine said. Hammer told the board the district is within the federal 90-day window for tax-exempt advance refundings for bonds with call dates of Feb. 1, 2025, and that the team will likely target higher-interest maturities for largest savings.

Presenters described two targeted series: a 2015 issue originally issued at just over $64 million (about 51.6 percent of which will be callable under the plan) and a 2016 issue that has maturities with higher interest rates. Hammer said the district’s historical refundings saved about $12 million over a prior 10‑year period and that current market conditions could produce roughly $1.5 million to $2 million in additional savings if pursued.

Board discussion noted timing options; staff proposed a sale day in early May with a bond closing about three weeks later and the standard 35‑day redemption period after closing. Hammer also outlined a projection that careful levy management and refinancing could create up to about $100 million of capacity for future capital projects without raising current tax rates, depending on the board’s choices about moving principal forward in debt schedules.

Following the presentation, the board adopted an amended and restated resolution related to the anticipated issuance of the district’s general obligation refunding bonds (the board assembly had previously adopted an intent resolution on Oct. 10, 2024). The resolution was approved by roll call vote; the board’s materials noted the resolution gives staff flexibility to add the 2016 issue into the parameters if market conditions are favorable.

Sovine said staff and advisors will return with sale-day recommendations and final documents once underwriter feedback and market timing are set.