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Paradise Valley Unified Board OKs $97 million bond sale authorization, cites AA/AAA credit ratings
Summary
The Paradise Valley Unified School District governing board unanimously authorized issuing and selling $97 million in school improvement bonds under Resolution 583; board members and financial advisers described market conditions, repayment schedule and planned uses.
The Paradise Valley Unified School District governing board on Aug. 7 unanimously approved authorizing the issuance and sale of school improvement bonds totaling approximately $97,000,000 under Resolution 583.
The authorization, moved by Dr. Lim, will be part of a multi‑phase borrowing plan tied to the $340 million voter authorization approved in November 2023. Assistant Superintendent for Business and Finance Jill Berrigan told the board the district expects the new sale to leave about $168 million remaining from the voter authorization and estimated an all‑in true interest cost near 3.9 percent. Berrigan said bond proceeds will fund construction projects, buses, technology refreshes and furniture replacement; she said the sale will likely fund initial architecture and guaranteed maximum price work for the district's next rebuilds, probably two elementary schools and one middle school.
Board members followed with questions about market timing and how the sale amount was chosen. Bill Davis of Piper Sandler, the district's financial adviser, and Megan Burke of Stifel, participating underwriter, told the board markets had stabilized over recent weeks and that Paradise Valley's strong credit profile was attracting investor interest. Davis said a comparable, lower‑rated Arizona school district sold bonds this week at an all‑in true interest cost of about 4.03 percent; both advisers said the district's Aa1 (Moody's) and AAA (Fitch) ratings and the size of the issue should help produce competitive pricing.
Berrigan explained the $97 million figure is based on project needs identified by the facilities, purchasing and transportation departments and said the district intends to sell bonds in phases rather than the full $340 million at once to avoid costs associated with issuing funds far ahead of need. Board members asked for and received clarification that the district had considered timing and that proceeds will be used only for items allowed under the voter pamphlet.
The motion passed unanimously. The district expects bond repayment from 2026 through 2044; final sale pricing and the ultimate true interest cost will be reported to the board after the sale.
