Mason Public Schools Completes Bond Sale Under Budget and Receives Strong Bond Rating
Standard & Poor’s (S & P) Global Ratings raises district’s rating to ‘A+’ from ‘A’
Mason, MI – Last week, Mason Public Schools successfully completed the sale of Bonds necessary to complete Phase 1 of the district’s Capital Improvement Project as well as received an upgraded rating from Standard & Poor’s (S & P) Global Ratings for building and site bonds.
On Monday, April 16, the district successfully completed the Bond sale of the $34 million budgeted for Phase 1 of the district’s Capital Improvement Project. The district received strong competition for the Bonds receiving seven bids. The lowest bidder was UBS Financial Services, which provided a True Interest Cost (TIC) bid of 3.37%. The initial interest estimate submitted in the Bond application to the Department of Treasury was 4.22%. As a result, the actual debt service, which includes principal and interest, for the 2018 Bonds will be less than budgeted. The average millage levied to pay off the debt over the life of the bonds will be reduced, resulting in a savings for taxpayers.
Earlier this month, Standard & Poor’s (S & P) Global Ratings released its Bond rating for the district. S & P has upgraded the school’s Bond rating from an A to an A+. S & P takes many factors into consideration to rate a school district for Bond sales. For Mason, the A+ rating from S & P reflects the district’s positive operating performance and growth of available reserves to 12.7% in fiscal 2017 from 7.2% in fiscal 2014 and stable enrollment.
“Phase 1 of the Capital Improvement Project has gotten off to a strong start with the announcement of a favorable bond rating as well as a lower-than-budgeted interest rate,” said Ronald Drzewicki, Ed.S., Superintendent of Mason Public Schools. “The district has been conservative and ambitious with the initial steps and timelines for the project. With this official kick-off, we can now move forward to design and construction all while keeping the end goal in mind – student success.”