By David Fleet
Goodrich- On Monday night, District Superintendent Wayne Wright announce the successful sale of the districts 2021 Refunding Bonds (federally taxable) in the amount of $4,455,000.
The bonds from the School Bond Loan fund, were at a rate of 3 percent and refinanced at a lower rate of 1.384 percent.
“The bonds reduce the repayments to the State of Michigan by a total estimated amount of $487,363,” said Wright. “This money is being saved for the taxpayers. The district will now have less to pay back and at the end of the bond issue, the community will pay less back for the bond sale.”
The 2021 Refunding Bonds are being issued for the purpose of refunding certain outstanding indebtedness of the school district to the State of Michigan under the State of Michigan School Bond Qualification and Loan Program and to pay the costs of issuing the bonds.
The estimated reduction in repayments is based upon assumptions regarding the district’s taxable value growth rate and the interest rate charged by the State of Michigan Department of Treasury.
In preparing to sell the 2021 Refunding Bonds the school district, working with their municipal adviser, PFM Financial Advisers LLC, requested that S&P Global Ratings, a business unit of Standard and Poor’s Financial Services LLC (“S&P”) evaluate the school district’s credit quality. S&P assigned the school district the underlying rating of “A+” with a stable outlook.
The rating agency cited the school district’s very strong wealth and income indicators and maintenance of strong reserves in their rationale for rating of the school district at this level.