During the FY 2018 Budget and CIP processes, staff discussed the need to issue bonds to accomplish certain FY 2018 capital projects planned in the FY 2018 CIP and Budget. Projects for which borrowed funds are anticipated to be used are as follows:
- School technology, bus replacements, and capital maintenance projects;
- Renovations to Courtland High School;
- Bunkroom addition at Co. 6 (Salem Church); and
- Replacement fire equipment.
The refunding of the Series 2009B bonds is expected to yield interest savings of approximately $1.2 million over the remaining term of the bonds.
Debt service related to the new money GO issuance is included in the FY 2018 Adopted Budget. Savings associated with the potential refunding was not factored into the FY 2018 Adopted Budget as we were not certain which series of bonds, if any, would be a candidate for refunding at the time the budget was approved. A future budget adjustment will be necessary to record the bond proceeds, issuance costs, and payoff of the refunded bonds once the transaction is finalized. Due to the amount of the future budget adjustment, a public hearing will be required. The future budget adjustment will also adjust for any differences between the budgeted and final debt service figures.
Staff requests that the Board approve the attached resolution and related documents for the GO issuance to occur this summer. As is always the case when we request Board approval of bond documents, the documents are subject to further edits as we finalize the bond transaction, but are substantially complete at this time. Additionally, staff requests that a public hearing to budget the bond proceeds be authorized for September 12, 2017 or thereafter. |