District outlines $55M facilities financing plan and weighs levy options after defeat

Yellow Springs Exempted Village school officials detailed the financing package for the district's planned facilities project and discussed near-term levy options after a recent ballot defeat.

Heather Arling of Railey Bean Advisors, the district's municipal adviser, told the board the financing combined a $26.63 million general obligation bond and roughly $28.7 million of certificates of participation. "My name is Heather Arling of Railey Bean Advisors, and I am the municipal adviser to the district, which means that I have a fiduciary responsibility to the district to ensure the lowest cost of borrowing funds or the most efficient financing possible," she said. Arling explained the district sought a short call (six years from reimbursement) aligned with anticipated state OFCC reimbursement so the district could refinance early if state funds arrive.

Arling described a strategy to use a small-issuer note to temporarily invest proceeds and capture arbitrage-free yield during the construction window; she said the market'all-in rate on the 2024 bonds was 4.83 percent, including issuance costs. Board members pressed for details about the $15 million note, premium receipts, and the projected millage impact; the treasurer clarified that bond proceeds are restricted to the capital project and that premiums are earmarked for debt service and the building fund.

Board members also discussed choices for restoring district operating revenue after a recent levy loss (the March vote was 55% opposed). Options explained by staff included: renewing existing emergency levies (renewals of 5 years), placing a substitute levy that captures new-construction growth (which could be effective tax year 2024 or 2025), or pursuing a permanent operating levy. The treasurer recommended substitutes or permanent operating levies to stabilize long-term revenue, while other members emphasized voter messaging and preferred a shorter trial period to rebuild public trust.

To allow more detailed planning, the board agreed to schedule a finance-focused work session in May (board members discussed availability and agreed on a morning session) to develop levy timing, messaging and legal steps. No new levy was placed on the ballot at the meeting.

Next steps: the board will hold the finance work session to set a recommendation and may request legal counsel and outside citizen communication committees to assist with voter education; staff will return with updated five-year forecasts in May.