On January 20th, the USD 379 School Board held a special meeting to discuss the logistics of a potential bond. Members heard from three industry experts discussing financial aspects, property fixes and upgrades, as well as the ins and outs of hosting a bond.
Before the experts presented, Superintendent Brett Nelson reminded everyone that the meeting is to learn how they work and then vote on the possibility of one.
“We’re nowhere close to saying ‘Yes we’re going to pursue a bond,’” he said. “It’s all about getting information before we pursue the process.”
Nelson added, “Hopefully by the end of the night you’ll have a 10,000-foot view of financing, timeline, and marketing. Eventually, if we elect to proceed, we would have to start prioritizing what areas we would want to proceed.”
In addition, Board president Tracy Claeys said the meeting was set as many board members are new to the idea of a bond.
“Several of the members on the board haven’t been a part of the process before. We’re getting information on the process.”
Experts included Clayton Kelly from Piper Sandler, a bond financing company out of Kansas City, Brandon Gibson and Greg Tice from SBT Architecture, who run bond campaigns, and Adam Crowl and Levi Schneider of BHG Construction, who performed facility audits.
Kelly spoke about interest rates, borrowing power, timelines of bonds, as well as various guidelines. He also talked about best practices within the industry and planning conservatively so there aren’t financial surprises down the line.
Meanwhile, SPT discussed the launch and marketing aspects of proposing a bond, including the best time of year to include elections and the importance of board member’s public support in getting voter turnout.
Finally, BHS gave a line-by-line rundown of each USD 379 facility with needed repairs, as well as wants or additions, such as new entryways for added safety, LED lighting, and turf play areas. It also included overlap projects, wherein Board Members would need to vote on which version of construction they would like to pursue.
Big-ticket items included safety and security updates in every school, roofs at some facilities, which needed repairs or total replacements, a potential addition to Lincoln School, and an overhaul of the Board Office.
Nelson also pointed out that many projects can be paid out of the capital outlay funds. However, BHS noted that it can be more cost effective for the district to include multiple construction projects at one time. Contractors will offer more cost effective options by packaging work across multiple buildings.
If Board Members choose to proceed, line items will be reviewed for urgency and cost and whether it should be a part of the bond.
The current USD 379 bond will be paid off in September of 2026 and includes 6.2 mill levies. The state average of mil levies is 12, Kelly said. The original maturity date of the bond was 2030, but because of a 2022 refinancing, with lower interest rates, it will be paid six years early.
In addition, it was noted by Kelly that Clay County will not receive state aid due to laws that changed in 2015 and increasing valuation in Clay County.
Toward the end of presentations, Nelson said his goal was to create a 10-year maintenance plan for the district, whether or not they pass a bond.
“Wherever they end up, all essential items should be scheduled out over the next 10 years,” he said. “We have a five-year plan currently in place. Now, let’s get a very clear roadmap of the next decade and what we have to hit and when to make sure we have quality facilities.”
