The Board of Education of Northville Public Schools is proud to announce the successful sale of its 2018 School Building and Site Bonds, Series I, as authorized by the voters of the School District on November 7, 2017. The 2018 School Building and Site Bonds, Series I, in the amount of $11,910,000, representing the first series of Bonds, are being issued for the purpose of erecting, furnishing and equipping additions to and remodeling, furnishing and refurnishing, and equipping and re-equipping school facilities; acquiring and installing instructional technology in school facilities; purchasing school buses; erecting, furnishing, equipping, developing and improving playgrounds, sites, athletic fields and facilities, and paying the cost of issuing the Bonds.
In preparing to sell the 2018 School Building and Site Bonds, Series I, the School District, working with their municipal advisor, PFM Financial Advisors LLC, requested that S&P Global Ratings, acting through Standard and Poor's Financial Services LLC ("S&P") evaluate the School District's credit quality. S&P assigned the School District the underlying rating of "AA-" with a stable outlook. The rating agency cited the School District's very strong economy, very strong general fund balances, stable enrollment and low-to-moderate debt burden in their rationale for rating of the School District at this level.
“The positive financial rating for the District’s bond issue contributed to the opportunity to sell the bonds at a favorable rate, maximizing the bond dollars targeted directly toward upgrading school facilities, enhancing existing school security, and providing students across the district with modern learning environments,” said Northville Superintendent Mary Kay Gallagher. “Our primary goal is to support learning for all students in a manner that prepares them for meeting the expectations and demands of colleges, universities and employers now, and in the future. These improvements will enhance Northville Public Schools’ tradition of excellence, while honoring our Board of Education’s commitment to strong stewardship of the community’s investment in our schools.”
The School District's financing was conducted by 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, Thrun Law Firm, P.C. The School District's 2018 School Building and Site Bonds, Series I were sold at a true interest rate of 2.23% with a final maturity of 2027 (a repayment term of approximately 9 years).
Brenda Voutyras, Managing Director with Stifel states, "Northville Public Schools’ Bonds were well received by the bond market. We were able to take advantage of current interest rates that met the goals of the District and resulted in a lower cost of borrowing than originally anticipated."