District sells first round of bonds totaling $285 million
Bond sales result in savings to taxpayers and lower repayment cost for district
The Five Star District’s initial sale of general obligation bonds provided the positive outcome the taxpayers were guaranteed and will have no impact on the district’s mill levy rate. On Dec. 1, 2016 the district sold the first set of bonds for the $350 million bond program approved by voters in November 2016. Initial bond sales totaling $285 million will fund the first phase of the bond program that will invest in every student, every school and every community.
Using conservative financial estimates, the district told voters the bond program would have a maximum repayment cost of $653 million. Instead, the Five Star District's estimated repayment cost is now less than that at $625 million.
The bond issue will be paid off over 20 years and principal will be retired at various points during that time span. The remaining $65 million of the 2016 voter-approved bond program will be sold in the next two to three years.
In addition to the selling of new bonds, the district also refunded $34.8 million in bonds issued in 2006. This lead to a lower rate which will result in a savings to taxpayers of $3.4 million.
Despite a volatile market, the district’s bond sale proved successful due to a strong team working in the best interest of the Five Star community. The district’s underwriters include JP Morgan, KeyBanc Capital Markets, Stifel Nicolaus and RBC Capital Markets. Also integral in the bond sales were PFM, the district’s financial advisor, and ButlerSnow, the district’s bond counsel.