The District’s bonds were in high demand due in part to the District’s high quality credit rating of Aa2 from Moody’s and AA- from Standard & Poor’s. The District had orders in excess of $90 million, despite only having $37 million worth of bonds available. Twenty-five unique investors placed orders for the bonds. As a result, the bonds were issued with a combined interest cost of approximately 3.64%.
The District manages its general obligation bond program to protect taxpayers’ interests. The District is conservative in the assumptions it uses when issuing debt in order to honor the tax rate commitments made to voters. Additionally, since 2006 the District has refinanced its outstanding bonds four times for a total of $12.1 million in present value savings. These savings are passed directly to taxpayers in the form of lower taxes.
This transaction reflects the commitment of the Board of Education to deliver priority improvement projects for students and the community, while honoring tax rate commitments made to voters.
Prepared by KNN Public Finance