Kelly Mrsic with Baird Financial apprised the Caverna Board of Education of the district’s current bonding ability for upcoming projects. Gage Wilson/for Glasgow News 1
STAFF REPORT
Glasgow News 1
Caverna Independent Schools are moving forward with a roughly $2 million construction and renovation project that would address aging roofs, campus access points and athletic facilities across the district, according to financial and planning documents presented at the district’s February board meeting.
The proposal includes roof work at Caverna elementary, middle and high schools, canopy improvements at Caverna Elementary School, and renovations to the high school’s athletics restroom facilities. The project also includes resurfacing the high school’s track.
“I know Caverna is a very special place,” Kelly Mrsic, a public finance banker with Baird Financials said.
Mrsic told board members the financing plan is designed to allow the district to complete the work without overextending its long-term borrowing capacity, while also meeting state funding requirements tied to school construction.
The total project cost is estimated at $2,019,890. Funding would come from a mix of district bonds, state-supported School Facilities Construction Commission bonds, and district cash reserves.
According to the financing breakdown, about $1.56 million would be funded through district bonds. An additional $242,658 would come from SFCC bonds, while $136,468 in building fund cash and $73,422 in capital outlay funds would be used to meet state cash-match requirements.
Most of the funds –- just over $1.94 million – would be dedicated directly to construction and contingency costs. About $39,633 would go toward bond issuance expenses such as financial advising, bond counsel and bank fees, with another $36,200 allocated to bond discounting.
The project is now advancing from planning into the bond-issuance phase. A special-called meeting of the Caverna Independent School District Finance Corporation was scheduled toward the end of the group’s regular meeting on Feb. 12. Corporation members approved the issuance of School Building Revenue Bonds, allowing the body to advertise the bonds for sale and finalize the legal and financial documents needed to take the project to market.
District financial projections presented with the plan show that Caverna will maintain long-term borrowing capacity even after issuing the new bonds.
Based on anticipated building fund revenues, the district is estimated to have approximately $2.4 million in bonding capacity in fiscal year 2026 and $2.9 million in fiscal year 2027, even after the new debt is added.
The district already has existing bond obligations stretching into the 2030s, but those payments are projected to decline after 2033, freeing up additional financial flexibility in later years.
A financing timeline included in the presentation shows steps scheduled from late January through late March, including market reviews, federal interest-rate meetings and target dates for pricing and closing the bonds.
Key Facts:
– Caverna Independent Schools plan a $2 million upgrade.
– Roof and athletic facility improvements are prioritized.
– Project funds include district and state-supported bonds.
– Long-term borrowing capacity remains stable.
Gage Wilson with Glasgow News 1 contributed to this reporting.
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