District 34 has earned the highest rating possible (Aaa) from Moody’s Financial Services, which puts the District in a favorable position with interest rates. The District also consistently earns state awards for its financial management.
On Monday, December 14, the Board approved a resolution for the first bond issuance resulting from the March 2020 referendum. The resolution approved is to issue General Obligation Bonds of up to $60M to pay for the referendum-approved capital projects.
On December 15, District 34 received 11 bids and secured a deal with R.W. Baird & Co. with a cost of 0.943% (including interest rates, underwriter's discount and all costs of issuance). This rate is much lower than the 1.96% estimate presented to the Board of Education on October 27, 2020 and represents a significant savings and benefits for taxpayers:
- The extremely competitive bid reduced the final maturity of the Series 2021 bonds by one year and also reduced the final maturity of the total $119M referendum plan by one year.
- The shorter overall amortization resulted in total debt service with $10M less interest cost over the life of the bonds than shown at the October 27, 2020 presentation to the Board of Education.
For additional details visit our Building Future: Referendum Progress page.