The new proposed transportation facility was again a main topic of discussion during the Carroll Community School District’s Board of Education Monday night meeting. The members were first presented with a general overview by Piper Sandler, who will serve as the financial advisor and underwriter for the bond. Managing Director for Piper Sandler, Timothy Oswald, shared that the district currently has approximately $5.2 million in its SAVE account, which is projected to cover the cost of the base bid. Oswald further recommended setting the resolution to enter into a bond agreement NOT to exceed $16 million, to ensure all potential scenarios are accounted and paid for.
This resolution is just the letter of intent that the district is looking to complete the project, but nothing official has been decided. The public hearing has been scheduled for the July 15 meeting to allow community members to provide input for the district to borrow money. After the public hearing, 14 days have to be given to enable any petitions to be signed and presented to the district opposing this resolution. Still, the district may proceed with the bond agreement if none are brought forward. Board Member Duane Horsley asked Oswald if he would know the payments or how much they would need to borrow for the different options, for example- just constructing the base bid versus adding one or both of the alternates. Oswald did not have that prepared for that presentation but said he could do so and get back to the board. Horsley said he would appreciate that information before the board to proceed into any agreement, as he has been playing through different potential scenarios.
Horsley also questions if postponing the cold storage saves the district money, as interest rates with the bond are around four percent, with construction inflation increasing six to eight percent annually. The board members decided to table the agreement with Piper Sandler until the next meeting, when Oswald can give cost projections on each option and talk the board through whether to enter a bond or take out a loan if the district isn’t planning to borrow much. The schedule for the transportation facility has been updated, accommodating an eight-week shift. The board will now authorize the SAVE bond sale or loan agreement in August, with bids opening in September, and the board will make the final decision on the construction plan after the bids return. The updated timeline has an anticipated construction start date of mid-October this year and finishing in October of the following year. Again, the public hearing on the district entering a bond agreement will be on July 15, and the public is encouraged to attend.
