Refinancing of Bonds Saves Taxpayers Over $3 Million

January 25, 2022

The Centennial School Board formally approved the financing of bonds, yielding a net savings of $3.265 million for our community taxpayers. The School Board voted in December to move forward with a refinancing of bond issues. The district monitors the financial markets for potential opportunities to refinance outstanding debt. Centennial partnered with Baird to secure a credit rating and monitor taxable borrowing rates for an opportune time to bring the bonds to market for pricing.

Standard & Poor’s (S & P) Global Ratings assigned its 'AA-' underlying rating and its 'AAA' long-term rating (based on credit enhancement) to Centennial School’s $58.660 million taxable general obligation (GO) refunding bonds. At the same time, S&P Global Ratings affirmed its 'AA-' underlying rating on the district's GO bonds outstanding, and its 'A+' long-term rating on the district's existing certificates of participation (COPs). The outlook on all ratings is stable.

The district experienced sizable tax growth in recent years, reflecting primarily residential housing growth and appreciation. The district's finances remain strong, supported by a 10-year referendum-approved levy in 2019.  The district's debt burden remains moderate, which is expected to remain stable with no immediate large debt plans on the horizon. Bond rating highlights:

  • Strong local economy with continued residential development, with market value per capita that is considered extremely strong;
  • Very strong general fund reserves, reflecting conservative budgeting, although officials plan to spend down reserves in the next few years; and
  • Moderate overall net debt burden with rapid amortization and no additional major debt plans.

At the December 2021 school board meeting, an Authorizing Resolution was adopted to move forward with a refinancing of bond issues. The bonds were brought to market on January 12. The closing of the bonds will occur on February 9, 2022.