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District finance director briefs board on $33.8M facilities bond pre-sale; no sale action tonight
Summary
Director of Finance Andy Crostead updated the board on a planned $33.8 million general obligation facilities maintenance bond issuance, described state credit enhancement that should enable AAA pricing, and outlined a June 2 sale timeline and June 25 proceeds deposit; the board was not asked to take action at this meeting.
Rochester Public Schools' director of finance, Andy Crostead, briefed the board on a pre-sale report for proposed $33,800,000 in general obligation facilities-maintenance bonds during the May 5 meeting.
Key points: Crostead said the district expects to sell the bonds on June 2 and deposit proceeds on June 25. He explained the district participates in state credit enhancement that should allow the bonds to be sold at AAA pricing even though the district's own rating is lower, and that a ratings call is scheduled ahead of the sale.
Refunding update: The district considered refunding some existing bonds but Crostead said current market conditions do not now support sufficient savings after issuance costs, so the likely June sale will be for new facilities maintenance bonds only. He also reviewed a 10-year facilities plan that guides the timing and amount of future bond sales and said the district aims to keep tax rates relatively flat by timing new debt with expiring obligations.
What the board will see next: Crostead said Ellers (financial advisor) will return on or before June 2 with the sale details and resolutions to accept the sale; the board would then be asked to approve the sale that evening.
