The Butler Tech Board of Education has authorized Treasurer Ed Pokoro to issue up to $3 million in Bond Anticipation Notes to refinance existing debt and secure funds for future capital improvements.

“This is a renewal of existing notes and is consistent with our long-term plan for the funding of our capital improvements,” Pokora said.

State law allows a school district to issue bonds or notes for capital improvements, up to one-tenth of one percent of the total tax base of the district without voter approval. The total assessed valuation of the school district is currently at least $8.1 billion, according to an assessment prepared by the district’s bond counsel.

In 2008, the district secured financing of $7.5 million for the local share of a renovation project at D Russel Lee and for the purchase of land for the future bioscience school. The outstanding balance on that financing is $3.5 million.

The resolution passed Tuesday night will result in a $500,000 reduction in principal.

Pokora said the potential flat funding from the state of Ohio for the next two years is also a factor in issuing the bonds at this time.

“Since the fall of 2012, we have been meeting with our bond counsel and our underwriter to review options to bond this debt over a longer term, as opposed to year-by-year, to reduce the annual issuance costs, free up needed cash in light of the state budget, and to prepare for funding the bioscience project or other facility needs,” Pokora said.

“With the current low interest rate environment, we intend to issue bonds later this year and retire the outstanding balance over a longer period of time,” he said.

Bonding the remaining debt during 2013 would allow the district to obtain a rating from Standard and Poor’s or Moody’s in anticipation of funding needed for the bioscience facility or other facility needs.

“This would be accomplished by transferring funds to a permanent improvement account each year,” Pokora said.

It has been 12 years since the district has had a bond rating, Pokora said.