UCS Bond sale and refunding provide interest savings for taxpayers, funds for technology and capital improvements

A recent Utica Community Schools bond sale and refunding will create nearly $2 million in interest savings to taxpayers and provide for enhanced technology and other capital improvements.

The district in May sold more than $30 million in previously voter-authorized bond funds to take advantage of improved market conditions.  A portion of the bond sale reflects a refunding process that will result in long-term interest savings and a second series will fund projects approved by voters in 2009. 

The 2009 bond issue is being used to upgrade technology and networks throughout the district, create equity between district facilities, and improve building safety and infrastructures.  Previous projects have included upgrades to the wireless network, replacement of student computers, electronic collaborative classrooms at Stevenson and Utica high schools, enhanced security cameras at district high schools, renovated science classrooms at Eisenhower High School and new media centers at Heritage Junior High School and Utica High School.

“Thanks to the support of our community and the district’s overall fiscal management, we will be able to improve our student’s learning environment and create savings for our taxpayers,” Superintendent Dr. Christine Johns said. “This recent sale will allow our students and teachers to have access to improved technology that supports teaching and learning.”

Approximately $5.5 million of the bonds will primarily be used to fund improvements, including technology enhancements and replacement of equipment districtwide. Bond proceeds will also allow for the purchase of new buses and replacement of the boiler at Jeannette Junior High School.

The remaining $24.7 million in bonds will refinance a prior sale and create $1.96 million in interest savings for UCS taxpayers over the next eight years.

As part of the recent sale, the district requested a financial review from national credit rating agency Standard and Poor’s. The district’s overall financial management was reflected in its attainment of “AA” bond rating.

The rating agency cited the school district’s very strong general fund reserves, coupled with good financial management practices, very strong income indicators and low overall net debt levels in their rationale for rating of the School District at this level, according to bond consultants from Stifel, Nicolaus & Company, Incorporated.

"Utica Community Schools bonds were well received by the bond market,” said Brenda Voutyras, Managing Director with Stifel Nicolaus & Company, Incorporated. “We saw a high level of demand and were able to take advantage of rates that produced a cost of financing below original estimates and which resulted in a very nice level of savings for the district and its taxpayers."