Board approves $34.3 million school facility bond sale at ~3.0% effective rate

The Oak Creek-Franklin Joint School District Board of Education voted to award the sale of $34,300,000 in general obligation school building and facility improvement bonds, Series 2025A, after a competitive sale and rating review.

District staff and financial advisors told the board the district received 10 bids and the winning bidder was Jefferies of New York. The effective interest rate on the bonds was described in the presentation as about 3.01 percent; individual maturity yields ranged from roughly 2.65 to 2.76 percent and the closing date was scheduled for March 19, 2025, with final maturity on April 1, 2030.

The board’s financial advisor noted Moody’s affirmed the district’s AA2 rating and credited the district’s fiscal discipline and steps taken to respond to the end of ESSER funding. Staff said the combination of the bid, bond premium and current yields reduced the district’s total advertised debt levies by approximately $1,960,000 compared with the amount that was advertised during the bond referendum period.

Presentation material distributed at the meeting showed the district expects roughly $35,000,000 available for project spending after premiums and an assumed conservative interest-earnings estimate; staff said the district’s conservative estimate of investment earnings was about $770,000 but noted actual earnings could be higher. The presentation also explained the structure of principal and interest payments, a call provision at eight years, and the planned schedule of payments (an October 1 payment followed by a change to an April 1 payment to spread levy impact without extending term).

Board members cast roll call votes in favor of the resolution. The motion passed on the record.