School board secures 17 million in record bond sale

In a recent government meeting, officials discussed the successful issuance of $17 million in bonds for the local school system, a move anticipated to yield significant savings due to favorable market conditions. The bonds were priced at an interest rate of 3.8%, lower than initial projections, reflecting a broader trend of decreasing rates following recent Federal Reserve actions.

The meeting highlighted the collaborative efforts of Superintendent Jesse and financial advisor Thomas, who explored various financial institutions before selecting Raymond James as the best fit for the bond issuance. The decision to proceed with the bond sale was made after careful consideration of fees and potential rates, ultimately resulting in a strong market response.

The bond sale attracted a diverse group of investors, including insurance companies, mutual funds, asset managers, and local banks, indicating robust community interest. Notably, individual investors also participated, demonstrating a personal connection to the school system.

The fixed-rate bonds will have a level debt service over 20 years, with annual payments fluctuating slightly around $1.2 million. The structure includes a 10-year call option, allowing for potential refinancing without penalties if interest rates continue to decline.

Officials emphasized the importance of the school board's credit rating, akin to a personal credit score, which plays a crucial role in determining bond interest rates. The meeting concluded with praise for the superintendent and his team for their effective management of the rating process, which ultimately contributed to the favorable terms of the bond issuance.