Board authorizes authority to pay closing costs and approves moving forward on debt-refunding proposals
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Summary
The board authorized staff to write a closing check up to $250,000 for the land purchase and approved moving forward with proposals to refund several capital outlay certificates and bonds, projected to net roughly $662,248 in savings over the outstanding lives of the issues.
The Tea Area School Board gave staff authority to write the closing check for the approved land purchase for up to $250,000 and authorized staff to pursue proposed refunding of certain capital outlay certificates and general obligation bonds to realize debt-service savings.
Business manager (Speaker 4) told the board the immediate closing-cost estimate is about $214,005 and asked for authority to write the check if a closing occurs before the next meeting. ‘‘Like, I just say up to 250,000. It won't go over that,’’ Speaker 4 said, and the board approved the motion by voice vote.
Speaker 4 also presented two refunding proposals from financial advisor Tom Grama: one combining the district’s 2014, 2015 and 2018 capital outlay certificates (estimated savings $432,318.75 over the remaining life to 2039), and a second combining 2015 and 2019 general obligation bonds (estimated savings $229,930). He said those totals include issuance fees and advisor costs, yielding a combined projected net savings of approximately $662,248. The board approved authority to pursue the refundings and understood a formal resolution will follow when financing documents are finalized.
Board members asked whether fees were included in the savings estimate; Speaker 4 confirmed fees and issuance costs were included. No roll-call or individual vote totals were recorded in the transcript; actions were approved by voice vote.
Next steps: the district’s financial team will finalize refunding documents and bring a resolution back to the board for formal approval once sale terms are fixed.