The Moorhead Area Public Schools board voted Oct. 13 to approve a resolution stating the district’s intent to issue general obligation school building refunding bonds series 2025B in an aggregate principal amount not to exceed $57,115,000.

The board approved the resolution after a presentation from Matt Hammer, the district’s financial adviser from Ehlers (public finance advisors), who outlined a potential refunding of callable maturities from the district’s 2016A general obligation bond issue. Hammer said refinancing a portion of the issue could lower interest costs and reduce future debt-service levies collected from property owners.

Hammer told the board the eligible callable principal he reviewed was about $56,000,589 and that the most likely candidates for refunding were maturities through 2033. He said market conditions in early 2026 could allow the district to replace higher coupon rates with new bonds at lower true interest cost; his current estimate for a potential sale produced an estimated net present-value savings on the order of several hundred thousand dollars, and an estimated true interest cost near 2.8 percent based on market levels at the time of the presentation. Hammer noted the district would not be able to close on a bank-qualified tax-exempt issue during calendar 2025 because of a $10 million bank-qualified limit and other issuances this year; staff are targeting a sale and closing in early 2026.

Board members asked procedural and timing questions. Board member Keith asked what rate the district is currently paying on the outstanding maturities; Hammer said the existing coupon rates on the maturities under consideration were substantially higher than current market rates and that refinancing could move permanent interest cost below 3 percent on the day of sale. Board member Matt moved the resolution; board member Melissa Burgard seconded. The chair called the vote and all present voted aye.

The presentation reminded the board that state law requires any savings from a refunding to reduce future debt-service levies rather than be used for general operations. Hammer also reiterated that the district would evaluate which maturities to include as market conditions evolve and recommended preparing a preliminary official statement and a rating process in December, with bond proposals evaluated in January or February and a closing in February or March 2026 if the board proceeds.

The vote authorizes the district to move forward with planning and, if market conditions are favorable, to issue refunding bonds within the stated cap. The board did not adopt final bond documents or set a sale date at the Oct. 13 meeting; those steps would return to the board for final approvals as required by law.