Blue Valley issues first bonds from 2023 referendum, refunds bonds saving taxpayers $2.1 million
On Monday, June 12, the Blue Valley Board of Education issued the first bonds from the 2023 bond referendum passed by district voters on January 31, 2023. Blue Valley registered voters approved a $251,250,000 referendum that will invest in facilities, technology and safety and reimagine learning environments and programs that will benefit students and staff for years to come.
The principal amount of bonds sold in the 2023-A series was $150 million. Nine institutions were bidding on the bonds with the low bidder being J.P. Morgan Securities LLC with a true interest cost of 3.56%.
Blue Valley’s Board of Education also issued $32.135 million in general obligation refunding bonds in an effort to secure a lower interest rate and future savings for taxpayers. Six institutions bid on these bonds, with the low bidder being Morgan Stanley & Co., LLC at a true interest cost of 2.75%. These bonds were originally sold at a higher interest rate in 2012 and 2014. The new lower interest rate will save district taxpayers $2.1 million in future interest payments. The closing and delivery of both sales are scheduled for June 29, 2023.
During a rating review last month, Moody’s Investor Services reaffirmed the district’s Aaa bond rating, the highest possible rating. Standard and Poor’s reaffirmed the district’s AA+ bond rating, which is currently the highest rating in Kansas for a school district. The high ratings represent strong financial management and earn the district better interest rates that continue to save the district millions of dollars in interest over time.