Mountain View Whisman School District
Agenda Item for Board Meeting of 11/3/2022
Agenda Category: CONSENT AGENDA
Agenda Item Title: Bond Sale and Upgrade to AAA S&P
Estimated Time:
Person Responsible: Rebecca Westover, Ed.D., Chief Business Officer
Background:
On August 18th, the Board of Trustees was presented with legal documents and a financing overview of the Bonds. As a result of inflation and Fed actions, interest rates had risen significantly in recent months. At the time, the interest rate for the Bonds was estimated at 4.5% for a total cost of $182 million.
The District achieved favorable borrowing costs as a result of its ‘Aaa/AAA’ ratings and very strong investor demand. RBC estimated that the interest rate benefit of the rating grade was ~0.05%, or ~$1 million in lower taxpayer interest costs. The final overall interest rate for the Bonds was 4.19% for a total cost of $168.4 million.
Fiscal Implication:
$99,667,000 in Measure T Funds.
Recommended Action:
It is recommended that the Board of Trustees receive the memo, as presented.
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