The Whitefish School Board is on a mission to bring about significant improvements to Whitefish High School and its athletic facilities. With the 60-day window for contesting the school bond election closed without any challenges on November 16th, the board has officially moved forward. They are currently in the process of interviewing architects and an owner's representative, with final selections set to be made at their December 10th board meeting.

Impressions from Committee Members

Trustee Shannon Hanson emphasized the diverse perspectives brought by each committee member during the interview process. "As a committee member, how we collaborate has been fulfilling in a way. It's a lot of time and a huge decision… but we will be able to look back and say we were thorough," he said. Katie Clarke added that they are fortunate to have such a high-quality pool of applicants and that it reflects well on the district.

Selecting the Bond Issuance Council

D.A. Davidson of Flathead Valley was chosen as the bond issuance council. With experience in public financing and public bond issuance, they are preparing to recommend a resolution on how to issue the total $32.6 million for both academic and athletic bonds. The firm previously worked with the district on other school improvement projects.

After the selection of architects and the owner's representative, the financial time schedule will become more defined. These selected professionals will be consulted to ensure the best financial decisions are made.

The preliminary plan is to offer bonds in $5,000 increments, which will be sold as tax-exempt investments. There will be approximately 6,000 bonds available for purchase. Public notices will be published in local newspapers in early February to inform people about the availability.

Deciding on Bond Issuance Strategy

One of the first decisions is whether to issue all the bonds at once. Bridget Ekstrom of D.A. Davidson explained that issuing upfront maximizes profit and minimizes interest costs. "We think the premium will come in at about $2.7 million. And the current rate on investment is around 3.5%. So if all $32.6 million was invested in one year, we would have a little over $1.1 million to add to the project," she said.

In 2017, bonds for Muldown Elementary were issued all at once, while in 2012, the high school bond was issued over two series. There are pros and cons to both approaches, and the district will explore them fully as they move forward. They aim to certify at the bond closing that they can expend 85% of bond proceeds in three years and close the bonds in early 2028.

Montana bonds are in high demand as there are not many tax-advantaged investments in the state. The district's A-plus credit rating and current national trends suggest that they will be able to lock in good interest rates and earn investment earnings.

Impact on Taxpayers

Based on preliminary numbers and approximate bond premiums, taxpayers can expect a 13.34 mill increase in 2026 to cover both academic and athletic projects. This is slightly less than the projected 13.73 from the mill levy impact analysis available to voters in August.

Mills are a property tax that funds schools and public services. One mill is equivalent to $1 per $1,000 of assessed value. The levy was 15.38 mills in 2019 and 5.792 mills in 2024. There are seven years of debt payments remaining from the 2012 project, which will be balanced with the new mills. Over time, due to new constructions and expected home value appreciation, each taxpayer's share is likely to decrease slightly each year.

"It's not just inflation. It's new construction. In general, each time we have had a property reevaluation in the district in the past, values have jumped," Ekstrom said.