Bond refinancing saves money for Roseville Community Schools taxpayers

By: Maria Allard | Roseville - Eastpointe Eastsider | Published August 25, 2021

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ROSEVILLE — On Aug. 12, the Roseville Community Schools Board of Education announced the sale of its 2021 refunding bonds in the amount of $58,915,000.

The bond refinancing will save the district’s taxpayers more than $4.8 million in interest over the next 13 years. The $58,915,000 bond was used for building improvements throughout the district.

According to a press release from Joe Genest, district communications and marketing facilitator, the district refinanced its 2014 and 2015 refunding bonds to take advantage of the current historically low municipal bond interest rates. The school district’s 2021 bonds were sold at an interest rate of 1.80% with a final maturity of 2034, the same year the refinanced bonds were due to mature.

When preparing to sell the 2021 bonds, school officials worked closely with the Michigan investment banking office of the brokerage firm Stifel; the municipal advising firm PFM Financial Advisors LLC; and the law firm serving as bond counsel Miller, Canfield, Paddock and Stone PLC.

“Roseville Community Schools’ bonds were well received by the bond market,” Stifel Managing Director Brodie Killian said in a prepared statement. “The savings achieved exceeded our expectations.”

PFM requested that S&P Global Ratings evaluate the school district’s credit quality, and the rating of “A-” with a stable outlook was assigned. The school district’s two consecutive audited surpluses, with an unaudited surplus expected in fiscal year 2021 and maintenance of a strong available fund balance, was S&P Global Ratings’ rationale for its rating of the school district.

The savings achieved through the refinancing will help the district lower the amount it will need to levy for bond payments in the future. The savings cannot be used for operating or any other purposes.

Rayetta Ashbaugh, district executive director, business and finance, said the district’s fund balance was $4.7 million at the end of the 2019-2020 school year. Fund balance numbers were not yet available for the end of the 2020-2021 school year but were expected to be available soon.

“Roseville Community Schools would like to thank the residents for supporting our bonds for capital improvements. These changes allow us to provide a state-of-the-art education for each and every student,” Superintendent Mark Blaszkowski said.