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Board hears presale report for bond to fund high-school indoor air-quality project
Summary
Jody of Ehlers briefed the Princeton Public School District board on a presale report for bonds to fund an indoor air-quality project at the high school; bids are scheduled for Jan. 21 with a planned close Feb. 13 and an estimated true interest cost near 3.75%.
Jody of Ehlers presented a presale report to the Princeton Public School District board on a bond issue to fund an indoor air-quality project at the high school. The report described a short-term financing plan with four maturities for the project and timing that would present bid results to the board on Jan. 21 and close the issue on Feb. 13.
The presale report, provided as an information item, said the district will participate in the state credit enhancement program and that Moody’s would provide the enhanced rating (reported as AA1 for the credit-enhanced view). Jody said the district’s underlying credit rating is AA3. She estimated a true interest cost near 3.75% subject to market movement and noted the district may receive a reoffering premium from underwriters that could provide contingency for project costs.
Why this matters: The bond proceeds are intended to pay for an indoor air-quality project previously approved by the board; the district will also consider using the financing to refund certain 2014A maturities if market conditions allow, which could generate taxpayer savings by lowering future levies. Jody said the presale materials include debt-service schedules, a method-of-sale overview (competitive bids), and financial schedules showing projected levy impacts.
Board reaction and next steps: Board members had no substantive questions at the time of the presentation. The presale report will be updated as market information changes, the official statement will be released later in the week, bids will be solicited on Jan. 21, results presented at the board meeting that evening, and the scheduled closing is Feb. 13.
Representative quote: “The bonds that we are talking about tonight were approved last summer for an indoor air quality project at your high school,” Jody said, summarizing the purpose and schedule for the issue.
The presale report was an information item; no bond sale approval or new motion was taken at this meeting.
