Funds from a successful March 2020 referendum are on their way to Farmington Public Schools, following this week’s successful $57,265,000 bond sale.
Voters approved a total of $98 million for capital improvements. The first series of bonds will fund:
- safety and security improvements at district buildings;
- building additions, equipment, and furnishings, and roofing and climate control improvements;
- improving and developing outdoor athletic facilities, playgrounds and structures;
- buying school buses;
- acquiring and installing technology infrastructure and equipment; and
- paying the costs of issuing the bonds.
Moody’s Investors Service assigned the school district the underlying rating of “Aa3,” citing the District’s large suburban tax base with above average wealth and income and a higher than average per pupil revenue level as credit strengths.
The higher the bond rating, the more favorable the financing. Aa3 is among the strongest ratings, according to fidelity.com. Bonds were sold at a true interest rate of 2.57% with a final maturity of 2040 (a repayment term of approximately 20 years).
“Farmington Public School District’s bonds were received very well by the investor community,” said Brodie Killian, Managing Director with Stifel, the Michigan brokerage firm that handled the sale. “We had great follow-through from many institutional investors which resulted in a cost of capital much lower than originally anticipated.”