The Okaloosa County School Board approved the issuance of Certificates of Participation (COPs) on Monday to generate $175 million to fund major construction projects, including a new K-8 school in Crestview and additions to two existing schools (Destin Elementary and Baker School).

The board chose to use COPs as a financing mechanism, continuing a practice the district has employed for about 40 years. This method allows the district to secure all the necessary funds upfront to complete the projects, rather than waiting to accumulate funds over time.

• “The reason is so that we can get all the money up front. So that we can complete the projects that the Superintendent has already briefly outlined,” explained Dr. Lamar White, School Board Member. “Otherwise we’d have to wait… roughly over 25 years. I don’t think that would work.”

The Series 2024 COPs will finance the planning, construction and equipping of three key projects:

• A new 1,200-student K-8 school in Crestview – See Details
• 3-5th Classroom and other additions for Destin Elementary School – See Details
• 10-Classroom addition for Baker School – See Details

Julie Perry, the district’s chief financial officer, presented the financing plan. The COPs will have a maximum term of 25 years, with a final maturity no later than October 1, 2050. The district plans to use property tax revenues to repay the new COP 2024. The current COP, 2022-A, is being funded with half-cent sales tax revenue.

Jerry Ford, the district’s financial advisor, explained the complex financing structure to the board. “If this were a corporate transaction, they would be sold to investors at a hundred cents on the dollar,” Ford said. “But because of our tax code, municipal buyers are a little bit different.”

• Ford emphasized that while the board was authorizing a not-to-exceed of $195 million, they expect to issue about $160 million. The higher authorization provides flexibility in case of market changes. The COPs will net $175 million for the projects.

Superintendent Marcus Chambers highlighted the strategic planning behind the financing. “We have that pay structure already in place going forward,” Chambers said. He noted that payments on a previous COP issue were structured to decrease after a few years, making room for this new debt.

Dr. Bill Smith, program director for facilities planning, provided details on each project. The new Crestview K-8 school will be built on 49 acres of an 80-acre parcel owned by the district. The Destin Elementary project involves a two-story, 30-classroom addition, while Baker School will get 10 new secondary classrooms.

Chambers emphasized the broader impact of these projects across the district:

• “With the K-8 school, we’re now able to impact the vast majority of the elementary and middle schools in the Crestview area that are over capacity. This is going to provide capacity because we’ll have to rezone and students will go to the new K-8 school. As that happens, more capacity will be developed at the current schools.”

He added that the Destin Elementary addition would allow fifth graders to return from the middle school, alleviating capacity issues at both schools. For Baker, he noted the addition would “allow for some extra capacity as well as the Baker community continues to grow.”

All three projects are slated for completion by August 2026, though the Baker addition may be finished sooner.