District sells $40M in Series B bonds; consultant says true interest cost 3.69%, tax rate projected under $0.62

Bill Davis, a financial consultant with Piper Sandler, told the Flagstaff Unified School District Governing Board that the district sold roughly $40 million of the voter‑authorized 2022 bond authorization and has about $45 million remaining to sell in future rounds. "We had what I think is a very successful sale," Davis said, noting the winning bid produced a true interest cost of 3.69 percent.

The post‑pricing presentation showed robust demand: 14 underwriting firms submitted sealed bids and the spread between the top and bottom bids was relatively narrow. Davis said the competitive market and the district's credit ratings — described in the presentation as a Moody's AA2 and S&P AA‑ — helped secure favorable pricing.

District staff and Davis compared the projected tax impact to the estimates in the 2022 voter information pamphlet. Davis said the amortization schedule for the sale produced a projected tax rate for the current fiscal year below $0.62 per $100 of assessed value, which he described as lower than the pamphlet's prior estimates (the pamphlet had estimates that reached $0.64–$0.66).

Board members asked about timing and flexibility for the two remaining planned sales; Davis said the district has options on timing and amounts that could help manage tax impacts. No formal action was required of the board on the presentation itself.

The board thanked Davis for the report and wished him safe travel.