“Since November, the administration has been working diligently toward the issuance of the bonds,” according to a release from the district. “The first step of issuing the bonds was to achieve a bond rating for the district.”
Superintendent Vickie Hoffman and Treasurer Connie Cohn were able to present the district, including its finances, growth, staffing, test scores and programs, to Moody’s Rating Service, and “were very successful at achieving a very strong bond rating of Aa3,” said Hoffman.
“We had to sell and show why we’re someone they can trust to give loan money too,” Hoffman said. “Triad got in the middle of high quality.”
Achieving a bond rating is similar to a credit score, Hoffman said. The stronger the bond rating, the lower the interest rate on the bonds.
Police investigating vandalism at Springfield business
“A person has a credit rating, and schools are the same way only many don’t take time to get a rating, which means your interest rate is typically higher because a score isn’t yet established,” Hoffman said.
After the district received their high quality bond rating, they were then able to sell their bonds to the public.
“Triad’s bonds were very well received and sold quickly at very favorable interest rates for the district,” the release said.
Biard, a financial services company who served as the district’s bond writer, said the district was fortunate.
“We were fortunate to time the bond market perfectly,” the company said. “The bonds sold at interest rates much lower than originally anticipated which will ultimately benefit the taxpayers of Triad Local School District.”
After companies bid on the loans, each year of the bonds were sold to the public, Hoffman said.
“When the bonds came back, Biard said it saved our taxpayers over $100,000,” Hoffman said. “Because we got that high quality, when they (Biard) sold the bonds, they (the companies) got a lower interest rate.”
6 local schools recognized by state education board
Planning and construction for the new athletic facility will start on March 1, Hoffman said.
“The board will meet to plan and approve different contacts and then we can start after that,” she said. “We plan to have it up by fall 2020, by football season because we have to have our football games there.”
Voters approved a bond issue in November 2019 of 1.75 mils for 20 to 25 years to build a new athletic facility and 0.25 mils for lifetime permanent improvements, including renovations, safety and security.
Hoffman said the new facility will include a football field, field house, community room and a track.
“I think it’s going to help pull us together as a community,” she said. “The place we get the most people is at a football game. There’s so many people that come together, there’s a lot of things that happen in that area that builds community.”
A groundbreaking ceremony and ribbon-cutting will be held for the new athletic facilities at a later date, Hoffman said.
FACTS AND FIGURES
1.75 mils: Bond issued passed in November 2019
March 1, 2020: Start planning and construction on new athletic facility
Fall 2020: New athletic facility anticipated to open
The Springfield News-Sun is committed to providing covereage of Clark and Champaign County school district issues and developments.
About the Author