HOOD RIVER — Hood River County School District (HRCSD) board members unanimously agreed to move to the next stage of drafting a resolution for new Pension Obligation Bonds (POB).
Mark DeMoss, CFO, Hood River County School District
As Chief Financial Officer Mark DeMoss explained at the July 22 board meeting, the district is considering a new POB to replace the previous 20-year program expiring in 2028. DeMoss again went over the risks, rewards, and potential timelines of bond sales during the Sept. 9 meeting.
The district is not obligated to complete the bond sale unless it meets specific criteria, such as a maximum bond interest rate. If those conditions are not met in January, the district will also have an opportunity to sell bonds in six months and one year.
The board’s vote only authorizes Piper Sandler, a financial services company, “to proceed with drafting resolutions for creation of a new pension obligation bond side account … for a potential sale in early 2027,” as per the motion by Director Chrissy Reitz and seconded by Director Brandi Sheppard.
Per DeMoss, “Pension obligation bonds allow the district to borrow money through low-interest bonds that PERS (Oregon’s Public Employees Retirement System) then invests at a higher rate of return, which allows the district to save money.”
According to an analysis provided by Piper Sandler, the district previously authorized $25.1 million in POBs between 2002-2004, which saved it $16.8 million over 20 years.
PERS is one of the district’s highest and most unpredictable costs. As previously reported by Columbia Gorge News, HRCSD anticipates approximately $3 million in additional PERS costs during the 2027-2028 school year as compared to just three years prior.
Board members thanked DeMoss and team for their work in exploring the option to create another side account to address PERS liability.
“Mark has made a huge difference in explaining and understanding how that can really aid us financially, dealing with something that has been a huge problem for our state for a long time and something we didn’t create,” Reitz said.
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