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Board approves $34.8 million facilities bonds after competitive sale yields lower interest
Summary
After a competitive sale with eight bidders, the board approved issuance of $34,788,694.50 in general obligation facilities maintenance bonds (Series 2026A); the sale returned interest rates under 4%, producing $1.1 million lower debt service than pre‑sale estimates.
The Rochester Public School District board voted to authorize issuance of $34,788,694.50 in general obligation facilities maintenance bonds (Series 2026A) following a competitive sale that drew eight bidders.
Jod Zespa of Ellers presented sale results: the low bid produced an effective rate near 3.87%, below the pre‑sale estimate of 4.30%, and the lower rate reduced projected principal and interest payments by roughly $1.1 million compared with the district’s pre‑sale forecast. Zespa noted the district benefits from state credit enhancement and a strong underlying rating affirmed by S&P.
Why it matters The bonds finance projects in the district’s 10‑year long‑term facilities maintenance (LTFM) plan and are repaid via the district’s levy and state aid streams included in the capital funding structure. Lower borrowing costs reduce debt service pressure and preserve future levy capacity.
Board action The board approved the resolution to issue bonds by voice vote after the sale results were presented. The administration and board emphasized the importance of maintaining healthy reserves and sound long‑term planning to preserve favorable financing conditions.
Quote from the record "The lower interest rate resulted in principal and interest payments that are about $1.1 million lower than what was in our pre‑sale estimates," Jod Zespa said after reviewing the bid tabulations.
