Silver Consolidated Schools board authorizes first $7 million of voter-approved bonds to begin facilities work

The Silver Consolidated Schools Board of Education voted to approve an authorizing resolution that allows the district to pursue an initial $7,000,000 sale of general obligation bonds from a voter-approved $25,000,000 authorization.

Superintendent William Hawkins introduced the item and said the proceeds will be used to begin projects outlined in the district's facilities master plan. "I asked Mr. Valenzuela and Mr. Carrasco to come forward to present the bond," Hawkins said, framing the presentation as the step needed to continue projects in the plan.

Financial advisor Mark Valenzuela told the board the package includes a lengthy resolution and a preliminary official statement — the offering document that will be sent to investors. "It is the offering document that will go out to bond investors who are considering purchasing these bonds," Valenzuela said, adding that "it has to be factual" and urging board members to flag any inaccuracies.

Valenzuela said the action before the board is a parameters resolution that sets upper limits for the sale; the district plans to pursue up to $7,000,000 in the first issuance. "We're gonna be pursuing up to $7,000,000 for this first issuance of the 25 that the voters approved," he said.

Bond counsel (named in the transcript both as Luis Carrasco and as Luis Crossco) walked through the legal details, telling the board the resolution would authorize a general obligation school building bond series (2024 or 2025) in a maximum principal amount of $7,000,000. Counsel highlighted key legal parameters that the board must authorize: a statutory maximum true interest cost of 10% (which he said the market is not expected to reach) and a maturity that "shall not extend longer than 08/01/2044," consistent with the 20-year statutory limit for school district general obligation bonds.

Counsel and Valenzuela stressed that the resolution delegates authority to the superintendent or finance director to set final terms of the bonds so long as those terms fall within the board-approved parameters. Counsel also noted procedural limits on timing: pricing is expected in late 2024 or early 2025 with closing roughly two to three weeks later, and the bonds must be issued on or before 03/08/2025 under the supplemental public security act and the 120-day limit that applies when the board delegates issuance authority.

The board heard additional process details: the district will seek a rating from Moody's Investors Service, hire an investment bank to market and sell the bonds, and coordinate timing with the state Public School Capital Outlay Council (PSCOC). Superintendent Hawkins said he will present the district's PSCOC requests (including planning and design for a CLIF project and previously submitted Harrison roof and fire projects) and pursue legislative support as needed.

Board members were asked to review the preliminary official statement and resolution for accuracy. The advisers asked the board to begin review of the materials as distributed and to complete their "homework" within two weeks so the district can provide a clean document to the investment team; the board targeted the next regular meeting to confirm members have reviewed the packet.

On the motion to approve the bond resolution (moved by Doctor Diaz and seconded by Mister Khan), the board voted by voice — the president called for "ayes" and the motion passed. Earlier in the meeting the board also approved the meeting agenda by motion (moved by Mister Khan, seconded by Missus Clement).

The meeting adjourned after a final motion by Doctor Diaz, seconded by Missus Clement; a roll call recorded Missus Montenegro, Doctor Diaz, the clerk/reader, Mister McMillan and Missus Clement as voting "Yes." The meeting ended at 7:57 a.m.

Next steps identified by staff: board members will review the preliminary official statement for factual accuracy within two weeks, the district will seek a Moody's rating and retain an investment bank to market the bonds, and staff will pursue PSCOC approval and any necessary legislative outreach to support capital projects.