Superintendent sells Bonds and saves community $13 million
May 16, 2019
Wayne-Westland Community Schools is proud to announce the successful sale of its 2019 School Building and Site Bonds in the amount of $64,770,000 as authorized by the voters of the School District on November 6, 2018. Together with the bond premium generated from the bond sale, The District was able to exceed their first series construction fund deposit goal with a fund deposit just under $69.8 Million.
This means that the amount available for construction came in $625,941.25 higher than the budgeted amount. This is good news as this means that there is an $625,000 available for improvements above the budgeted amount.
Also, the actual bond interest rate came in much lower than the estimate. That means that the total bond payments are $13,167,163.45 lower than the budgeted amount. This means taxpayers will pay less than originally anticipated over the course of the bond.
The 2019 School Building and Site Bonds, representing the first series of bonds pursuant to such authorization, will be used for the purpose of remodeling, equipping, re-equipping, furnishing, re-furnishing school buildings, athletic fields and other facilities for safety and security, energy conservation and other purposes; acquiring and installing instructional technology equipment and infrastructure in school buildings and other facilities; construction of additions to existing school buildings and athletic field houses at both high school sites; preparing, developing and improving sites at school buildings, playgrounds, athletic fields and other facilities and the purchase of school buses, and paying the costs of issuing the Bonds.
In preparing to sell the 2019 School Building and Site Bonds, the School District, working with their municipal advisor, Baker Tilly Municipal Advisors, LLC, requested that S&P Global Ratings, acting through Standard and Poor's Financial Services LLC ("S&P") evaluate the School District's credit quality. S&P assigned the School District the underlying rating of "BBB+" and stable. The Bonds were also qualified through the State of Michigan's School Bond Qualification and Loan Program which further enhanced the District's Bond rating to "AA" and stable.
"We are so proud that we are able to be good financial stewards and sell our bonds at the most advantageous time. The District and our community will benefit from the fiscal responsibility and the improvements to our schools that the bond funds will allow us to complete," said Dr. Shelley Holt, superintendent.
The School District's financing was conducted by the Michigan investment banking office of the brokerage firm, Stifel, the municipal advisory firm, Baker Tilly Municipal Advisors LLC and the law firm serving as bond counsel, Miller, Canfield, Paddock and Stone, P.L.C. The School District's 2019 School Building and Site Bonds, were sold at a true interest rate of 2.99% with a final maturity of 2043 (a repayment term of approximately 25 years).
Brodie Killian, Managing Director with Stifel states, "Wayne-Westland Community Schools' Bonds were sold at an opportune time in the bond market. The District was able to enter the bond market after a recent decline in interest rates. The financing met the goals of the District and resulted in a cost of borrowing that was considerably lower than originally anticipated."