Adviser: Bond refinancing to save district $1 million
The Westerville school district was set to go to market today, Aug. 16, to sell $27.4 million in bonds as part of a refinancing package projected to save taxpayers just under $1 million.
The board approved a resolution in July to have financial consultants Robert W. Baird and Co. refinance portions of three previous bond issues.
In a report to the board Monday, Aug. 13, Baird managing director David Conley said the district gave a presentation to credit-rating agencies Moody's and Standard and Poor's last week and expected a credit rating to be issued this week.
The issuance of a credit rating would allow Baird to market and sell the bonds Thursday, Conley told the board.
Since the board approved the resolution in July, credit rates have once again dipped, edging the district's savings in refinancing closer to $1 million, Conley said.
If the board chooses to take the savings in one bulk sum up front, which members have indicated they would prefer to do, taxpayers would save an estimated $944,226, Conley said.
He said he anticipated a good response in the market to the sale of Westerville schools bonds.
"The early conversation has been very positive about your bonds," Conley told the board. "This community is widely regarded across the country as good credit, a good community. The feedback we're receiving from investors is right along that line."
The bond refinancing deal includes portions of:
* $6.9 million in bonds approved in 1995 for the Westerville Public Library.
* $20 million in bonds approved in 1996 to construct Genoa Middle School and renovate North and South high schools.
* $99.5 million in bonds passed in 2001 to construct Alcott and Fouse elementary schools and Westerville Central High School, and to remodel almost all other district school buildings.