Blue Valley issues first bonds from 2020 referendum, refunds bonds saving taxpayers $2.39 million
On Monday, April 13, the Blue Valley Board of Education issued the first bonds from the 2020 bond referendum passed by district voters on January 28, 2020. Blue Valley registered voters approved a $186,835,000 referendum that will reinvest in facilities and technology, reinforce school safety and reimagine learning environments and programs that will benefit students and staff.
The principal amount of bonds sold in the 2020-A series was $125 million. There were seven institutions bidding on the bonds with the low bidder being Bank of America Merrill Lynch with an interest rate of 2.151220%.
Blue Valley’s Board of Education also issued $12.485 million in general obligation refunding bonds in an effort to secure a lower interest rate and savings for taxpayers. Four institutions bid on these bonds, with the low bidder being Piper Sandler & Co. at 1.277843%. These bonds originally sold at a higher interest rate in 2009 and 2011. The new lower interest rate will save district taxpayers $2.39 million in interest payments. The closing and delivery on both sales is scheduled for May 7, 2020.
“We are very appreciative of the efforts of our community this past January to provide us with the ability to move forward with the improvements in our 2020 bond package,” said Dr. Todd White, superintendent. “Today’s interest rate environment allowed us to secure very favorable interest rates and create savings for taxpayers.”
During a rating review last month, Moody’s Investor Services reaffirmed the district’s Aaa bond rating and Standard and Poor’s reaffirmed the district’s AA+ bond rating.