ISD 278: Orono Schools
The Goal
Orono Schools (ISD #278) is located on a 120-acre campus in Long Lake, Minnesota, in the west-metro area of Minneapolis. The District serves approximately 2,000 students in all or part of the following communities: Independence, Long Lake, Maple Plain, Medina, Minnetonka Beach and Orono.
The District identified a need in the Middle School to provide a safe and secure entrance, as well as HVAC and mechanical system and equipment upgrades, at a cost of approximately $5,500,000. Given the size of the project, the School Board wanted to avoid using voter approved authority.
The Solution
The District engaged Ehlers School Finance Team for Debt Planning & Issuance. Ehlers analyzed the various financing options for the array of projects and took into consideration the District’s capability to bond against existing revenue streams, as well as generating additional levy authority for the Health & Safety portion of the project. The new levy authority was wrapped around existing debt commitments to keep the tax rate consistent. Ehlers educated District leaders on the ability to issue bonds using the current Capital Facilities and Long-Term Facilities Maintenance (LTFM) Program and facilitated the required submissions to the Minnesota Department of Education.
The Outcome
The District completed a multi-purpose issue using four authorities: LTFM Indoor Air Quality, LTFM Deferred Maintenance, Capital Facilities Bonds and Capital Facilities Notes. This allowed for the project funding to be completed through Board authorization while minimizing the impact to taxpayers in the District.