Refinancing bonds helping Highland School District 5 move forward with projects

Highland District 5 will launch renovations and other life-safety projects this year with the help of refinancing bonds.

The district has opted to refund expiring bonds and refinance existing bonds for a total of $3.84 million. Approximately $1.67 million will go toward the health and life safety projects at Highland High School, and $2.17 million will refinance existing bonds. According to Stifel-Nicolaus, the financial advisors handling the deal, the refinancing under lower interest rates will save the district approximately $32,000 in interest.

“This issuance will allow us to continue to follow the pillars of our strategic plan by monitoring debt and refinancing when beneficial in an effort to minimize cost to debt and maximize our resources and stabilize our tax rates,” said Superintendent Mike Sutton.

Stifel-Nicolaus’s presentation indicated that since the district was already issuing bonds for the life safety project, the refinancing would cost them nothing extra.

Sutton told the school board the move would allow the district to fund necessary work while “keeping an eye” on the tax rate. He said they are hopeful the move will keep the tax rate the same.

The project will include new parking lots at the high school and upgrades to lighting and other facilities. The high school will also get upgrades to sanitary sewers, storm drain lines and inlets, lift stations and more.

A year ago, Highland conducted a feasibility study on its school buildings that recommended a list of improvements ranging from expanding the primary school to adding a performing arts building at the high school. Highland Primary has kindergarteners split between two buildings, and Highland Middle is overcrowded: the library is often used as a classroom and there are limited STEM and special-needs classrooms with no vocational areas.

However, as of June 2020 the potential building project was put on hold due to the coronavirus pandemic.