Riverside Local committee told $15 million certificates of participation expected Tuesday for Buckeye projects

The Riverside Local Finance Personnel Committee was told on June 18 that the district expects to receive $15 million in certificates of participation (COPs) on Tuesday to support capital projects, including work at Buckeye High School, officials said.

Finance staff said COPs are a financing mechanism that allow districts to incur debt for capital projects without triggering a property-tax increase. "Certificates of participation which is the $15 million issuance. We expect to receive that on Tuesday," a finance presenter said during the meeting.

Why it matters: COPs let the district fund renovation and construction when a voted bond or tax increase is not used; staff emphasized the difference between a voted bond (supported by a tax levy) and a COPs issuance, which does not raise property taxes. The committee was told the district can indebt itself up to roughly 9% of property valuation under Ohio rules, and the planned issuance keeps the district well below that threshold.

Staff detailed timing and cash-management plans. Because the funds must be spent within a defined time window, the presenter said the district will place proceeds in a STAR Ohio account for liquidity and to earn short-term returns while ensuring quick access. "We have to spend 85% of this within three years," the presenter said, noting the district expects to complete the related projects in about 18 months.

The presenter cautioned about interest costs over long payback periods, showing that even low interest rates add materially to total repayments over decades. He also said leftover proceeds after construction and change orders would be used to retire debt sooner, estimating remaining funds could be "somewhere between $500,000 to $800,000 depending on change orders." The finance presenter said an additional, similar COPs issuance may be considered later for a high-school renovation depending on the board's decision.

Next steps: The issuance is scheduled to land on Tuesday and will appear on the board agenda for related capital authorizations. Staff said they will present more detailed appropriation and spending plans in the coming weeks as numbers are finalized.