District finance team previews $15M bond sale, Moody’s rating call and budget timing

District finance staff and advisors presented the board with the timeline and mechanics for a planned $15,000,000 bond sale and the steps that will follow.

Presenters said they have a rating call scheduled next Tuesday with Moody’s, after which Moody’s typically issues a rating about one week later. PMA Financial and law firm Chapman and Cutler are preparing the preliminary official statement (POS) that will provide prospective bidders with district financials and project details. The district expects to receive about $15,000,000 in proceeds and that the bonds may be sold at a premium; the POS face value could therefore appear slightly lower (for example, about $14.7 million) because of the expected premium.

The board was told Moody’s will examine leadership, debt levels, facilities needs, economic data and financial policies (fund balance, debt, investment policies). Presenters stressed that a stronger fund balance and clear financial policies can improve the rating and reduce borrowing costs. The bond sale is expected to be conducted competitively by PMA, and the bonds are scheduled to close on May 19.

Staff said the timing affects budgeting: a tentative amended budget that includes Fund 90 (safety and capital proceeds) will be presented April 28 and a final amended budget will be approved in June after the sale. The district also noted that the accounting for proceeds and expected premium will be reflected in the amended budget and that PMA will arrange for a separate bank account for proceeds and investment of those funds.

The board did not vote on the bond sale itself at the meeting; staff asked for any clarifying questions and flagged the next procedural steps for finance and the new board members who will take office in May.