Cache County issues $139 million in school bonds; prior refundings saved taxpayers about $15.7 million

Cache County School District officials announced that the district issued $139,000,000 in general obligation bonds and secured lower-than-expected interest rates after two prior refunding transactions.

Matt Dugdale, a municipal finance banker with Stifel Finance, told the board that the district’s prior refundings produced substantial present‑value savings: roughly $7,500,000 from a 2021 refunding and another $8,200,000 in a subsequent transaction. Dugdale said those savings were folded into the district’s analysis before issuing the $139 million package.

Dugdale said the district’s credit rating improved during the underwriting process, raising the rating from A1 to Aa3 in February 2024. “That was very significant,” he said, adding the upgrade lowered the interest rates investors required and “literally saved your taxpayers significant, significant dollars.” He credited district management, the business office and the board for the improvement.

Dugdale gave specific sale results: a first tranche of about $68,000,000 was purchased by JPMorgan at an interest rate of roughly 3.45 percent; a later tranche sold to Bank of America at about 3.58 percent. He said the team had estimated about 4 percent in an earlier analysis and therefore the final rates were better than estimates.

Board members asked when the next refunding window would open. Dugdale said the district has refunding opportunities to monitor and that the next likely window is 2027. He also clarified that the reported savings were net present value (NPV) figures, representing savings in today’s dollars.

The board did not take a formal vote during the presentation; the session was informational and included a brief question-and-answer period.

Why this matters: the rating upgrade and lower borrowing costs reduce the district’s debt service burden and free capacity for future capital needs, district staff said.