Since the 2007 addition of the District Office, our student count has increased by more than 4,500, and the number of central support staff (i.e., instructional support, technology, finance, human resources) has increased to accommodate those additional students, school staff, and campuses. The expansion will provide adequate working conditions for staff working to support districtwide functions. Staff are working two to three people in most offices intended for one person, with some in converted closets or hallways.

The District Office building was originally constructed in 1989 with an addition in 2007 provided by bond premium funds. In similar fashion, the Bond Oversight Committee recommended to the Board of Education that 2022 Bond program contingency funds — comprised of premium, interest, and project savings — be used towards this project. We worked to ensure that all of the projects outlined to voters are under contract and progressing as expected before spending program contingency funds. The Bond Oversight Committee also prioritized the use of program contingency funds on direct-student-impact projects first, totaling an estimated $20,600,000.

Bonds are a lending tool that school districts — with voter approval — can utilize to finance capital projects and related expenses. Bonds are issued on the open market and sold to investors. Similar to a home loan, investors are paid back with interest over time. If a bond issuer is considered a worthy investment, investors may purchase bonds for more than the asking price. The difference between the asking price and the purchase price is “premium.” 

Districts can invest bond funds and capture additional funds via earned investment interest rates while the funds are held until used. How much the district can make on interest investments is highly regulated through the Internal Revenue Service (IRS). When the bond proceeds earn a higher yield than the bond’s interest rate, a school district must make an arbitrage rebate payment to the IRS.

No, we requested the amount of funds needed to complete all of the projects outlined to voters. Because bonds are sold on the open market, there is a risk that investors will pay less than the amount asked or more than requested. There is never a clear understanding of what, if any, premium, a school district may receive on their bonds at the time of sale.

By law, contingency funds must be used in a defined time period and on capital projects. The IRS requires 85% of tax-exempt proceeds to be spent within three years, and all of the proceeds must be spent within five years.