School bond funding secured

Construction set to begin this year

Gunnison Watershed School District officials have continued with the next steps in the school bond process after voters approved ballot initiative 5A last fall. On Jan. 18, Stifel Public Finance of Denver priced the $95 million of general obligation bonds — “selling” the bonds in an electronic auction to secure the funding necessary to complete the district’s projects.

Bond funding will be utilized for improvements at all four of the school district’s campuses in Gunnison and Crested Butte, as well as the Marble Charter School. The projects are centered on creating safer schools, major maintenance, adding additional learning spaces and expanding vocational programs.

According to Superintendent Leslie Nichols, construction is expected to begin this summer with the goal of project completion in 2026. Timelines specific to each campus have yet to be determined.

The bonds were well received in the market, due in large part to the school district’s “Aa2” bond rating, the third-highest long-term credit rating, from Moody’s Investor Services. With the strong demand, interest rates could be lowered. The true interest cost for the 25-year bonds is approximately 4%, indicating savings from the initial bond funding request presented to voters.

“Locking in the low interest rates will allow the GWSD to achieve lower payments than permitted under the ballot question approved,” said Stifel Managing Director Todd Snidow.

In November, ballot measure 5A passed with a slim margin of 125 votes out of approximately 8,900 ballots cast on the issue. The bond will be supported by a property tax increase of approximately 5.7 mills, which equates to about $200 per year for every $500,000 of assessed residential property value.

The total amount of principal and interest allowed by the ballot question was $186 million, while the true maximum amount locked in at a price of $182.6 million, Snidow said. The maximum payment approved in the ballot question was $9.4 million annually, but the highest actual bond payment will be $9.161 million. The bond sale will close on Feb. 1.

“The Board of Education and I are tremendously grateful for the support of our voters for approving the bond,” Nichols said. “We are excited that these projects will become a reality and know that this will support our mission of ensuring that all students are successful.”

The district intends on making regular community updates via social media and at www. gunnisonschools.net/bond.

(Source: Gunnison Watershed School District.)

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