County School Board Turns to Bradley for Help with Public Financing Campaign

Issue

The Talladega County Board of Education in Alabama needed to raise more than $10 million for various capital improvement projects so it could continue to meet the needs of its students. Complicating the matter, the revenue from one of the local property taxes was insufficient and set to expire within two years, and the board also had debt that needed to be restructured at lower interest rates. Working with the board’s underwriting firm, Bradley helped the school board raise the necessary funds to meet its goals.

Challenge

Securing the money for the board’s capital projects required a complex and multi-stage strategy that took into account numerous stakeholders and time-sensitive matters. First, the board needed temporary or construction financing to begin the work. Next, it requested that the County Commission call for a tax election in January 2016 to provide increased and ongoing funding. The election carried its own specific legal issues related to campaigning and drafting the proceedings, to say nothing of the challenges inherent in seeking popular approval for a tax increase. Finally, the board had to secure long-term financing for its projects once the other pieces were in place.

Solution

Bradley helped the board with every step of the public financing aspects of its capital plan. The firm worked to ensure that the project could start on time via temporary financing, and then assisted the board in its successful campaign to raise the local school tax from 3 mills to 5 mills, which included providing advice to the county in its capacity as the taxing authority. Finally, within three months of the new tax being approved, Bradley lawyers served as bond counsel to help the board borrow nearly $10 million to fund its projects and refinance the preexisting debt. The firm’s experience and responsive service allowed the school board to secure the money it needed in a timely and efficient manner.