Lindbergh board eyes resolution for bond refunding


Executive Editor

A resolution authorizing the sale of more than $9 million in general obligation bonds to refund bonds issued in 2003 was scheduled to be considered earlier this week by the Lindbergh Board of Education.

The Board of Education was scheduled to consider the resolution Tuesday night — after the Call went to press. As proposed, the sale of the bonds, scheduled for Feb. 14, is expected to save taxpayers $500,000, according to Chief Financial Officer Pat Lanane.

In a memorandum to Superintendent Jim Simpson, Lanane wrote, “… The resolution approves the bond offering, the Notice of Bond Sale and the Preliminary Official Statement. All items have been included as attachments. This refunding is done as a direct savings to district taxpayers — $500,000. The final sale approval will occur at the February BOE meeting.”

At the recommendation of the district’s independent financial adviser, WM Financial Strategies, the Board of Education had voted in early November to begin the process of advance refunding the 2003 bonds.

As proposed, Lindbergh will sell $9.07 million in general obligation bonds to refund the bonds issued in 2003. Because the 2003 bonds are not callable until March 1, 2013, the proceeds from the sale of the refunding bonds would be used to purchase U.S. government securities, which would be deposited in an escrow account.

The principal and interest earned on the government securities would be sufficient to retire all the debt associated with the 2003 bonds when they are callable.