School System Saves $1.9 Million

completed a transaction on March 15, that refunded (refinanced) $28,310,000 of the bonds approved by the voters in 2005 to construct new schools, make additions and renovations to existing educational facilities and acquire and install new instructional, safety and transportation equipment for all educational facilities. This transaction authorized by the Douglas County Board of Education will save the property owners in Douglas County approximately $1,900,000 in interest over the next eight years.

“The Board of Education is always aware of the responsibility to be good stewards of public dollars while providing a quality education for all students,” said Board Chair Janet Kelley. “This opportunity to save taxpayers dollars by the refinancing of bonds is certainly welcomed. I am grateful for the vigilance of our financial department for being ready to take advantage of the market conditions."

As a part of the refunding process, Moody’s Investors Services reviewed the district’s financial condition and assigned an Aa2 Underlying Rating and Aa2 State Intercept Enhanced Rating. Likewise, Standard and Poor’s Rating Services (S&P) reviewed the district’s financial condition and affirmed its AA+ State Intercept Enhanced Rating and AA- Underlying Rating with a stable outlook on the district’s existing General Obligation debt. The strength of the credit ratings directly impacts the marketability of the bonds.

In April of 2010, the district refunded bonds from 1999 that will save approximately $705,681. Both of these refinancing transactions were conducted by Morgan Keegan & Company, Inc.

Dr. Gordon Pritz, superintendent of schools, stated, “I am pleased that we were able to take advantage of these opportunities to refinance our existing debt which will allow the district and the property owners of Douglas County to realize meaningful savings over the next few years.”