The Standing Committee on Budget Equity and Transparency voted to recommend that the board of education authorize Stifel to begin paperwork to pursue refinancing of district bonds if market conditions yield sufficient savings.

Lorenzo Boyd, managing director of public finance for Stifel, told the committee the district has five outstanding issues: 2010 qualified school construction bonds (QSCBs; originally $56,644,000; about $47.6 million remains and those bonds are noncallable), 2011 qualified zone academy bonds (QZABs; $35 million outstanding and noncallable), the 2017 general obligation bonds (approximately $26.57 million outstanding; callable 04/01/2026), the 2023 voter-authorized program (approved at $160 million; $135 million issued in the first tranche) and a March 2025 issuance of a final $25 million tranche.

Boyd said the 2017 bonds can be refinanced on a tax-exempt basis beginning in January 2026 because state rules allow refundings within roughly 90 days of a call date. He recommended beginning the administrative and rating work in November to meet the timing and scheduling needs of rating agencies and the municipal market.

"You can take $20,000,000 of those funds and actually prepay in 2028 ' prepay some of those bonds, either your '23 bonds or your '25 bonds, and put that money into an escrow account and prepay that bonds, and it'll legally be off your books," Boyd said, describing one option for using excess debt-service revenue.

Boyd also reviewed the district' long-term capacity: under Missouri law school districts may issue general-obligation debt up to 15% of assessed valuation; for SLPS he presented a legal debt limit of about $778 million, roughly $269 million currently outstanding and an available margin of about $509 million on paper. He noted the district' long-standing debt-service levy is $0.6211 (62.11 cents), which produces roughly $31 million annually for debt service; projected debt-service payments fall sharply around 2029 under current schedules, producing growing debt-service fund balances.

On a specific refinancing opportunity, Boyd said a September analysis identified roughly $275,000 in potential interest savings on about $14.4 million of 2017 maturities (an estimated 1.84% savings), exceeding the district' 1.5% threshold for current refundings at that time. Boyd said market rates rose in October and the projected savings fell below the 1.5% threshold, but he recommended authorizing Stifel to complete the engagement and necessary paperwork so the district can act quickly if rates move back into a favorable window.

Chair Alyssa AJ Foster moved that the committee recommend the board authorize Stifel to proceed with refinancing preparations and to sign an engagement letter; Dr. Theresa Danley seconded. The committee approved the recommendation by voice vote; there were no recorded opposed votes.

Boyd said that if the board approves the engagement the district would start the paperwork in November, hold a rating call and, if market conditions are favorable, price the financing and return to the board for final action at the planned Nov. 10 board meeting.

The committee discussion also reviewed past defeasances: Boyd said the district used about $14.5 million of debt-service fund balance in October 2024 to defease a 2030 maturity, and he cautioned that sustained operating fund drawdowns could harm the district' underlying S&P rating (AA-) and increase future borrowing costs.

Next steps: the committee recommendation will go to the full board for formal authorization; Stifel will proceed with paperwork only if the board approves the engagement and market savings meet the district' stated parameters.