The Riverside Local Board of Education convened on September 25, 2025, to discuss critical financing strategies for upcoming construction projects, focusing on a hybrid financing model that combines Certificates of Participation (COPs) and Tax Anticipation Notes (TANs). This meeting highlighted the complexities of school funding and the implications for the district's financial future.

The primary topic of discussion was the proposed financing structure, which aims to minimize interest costs while maximizing the district's borrowing capacity. The plan includes issuing $9 million in COPs and $3 million in TANs. COPs are unique in that they are structured as lease payments rather than traditional debt, allowing the district to avoid being classified as indebted under Ohio law. This flexibility is crucial for maintaining the district's financial health and credit rating.

The hybrid financing approach is designed to reduce debt service costs by approximately 15%, as TANs are viewed more favorably by investors compared to COPs. The maximum repayment terms for TANs are set at 10 years, while COPs can extend up to 30 years, aligning with the useful life of the assets being financed. This strategic planning is essential as the district navigates the complexities of funding construction projects while ensuring long-term financial sustainability.

Board members expressed concerns regarding the implications of this financing strategy, particularly the potential risks associated with committing to long-term lease agreements for facilities that may require significant renovations or replacements in the future. Questions arose about the district's ability to manage these obligations, especially if unforeseen circumstances rendered existing facilities unusable.

Additionally, discussions touched on the possibility of passing a permanent improvement levy to generate additional revenue for debt service. However, board members cautioned against relying solely on short-term levies, emphasizing the need for a comprehensive approach to funding that considers the district's long-term financial stability.

The meeting concluded with a consensus that further discussions are necessary to clarify the details of the financing plan and its implications for the district's budget. Board members acknowledged the urgency of moving forward with construction plans but stressed the importance of making informed decisions based on complete financial data.

As Riverside Local prepares to finalize its financing strategy, the board faces the challenge of balancing immediate construction needs with the long-term financial health of the district. The outcome of these discussions will significantly impact the community's educational infrastructure and fiscal responsibility in the years to come.