May 2021 Bond update from Chris LaHaie, Chief Financial Officer
On May 11th, the sale of the Cedar Springs Public Schools (CSPS) School Building and Site Bonds (the “2021 Building Bonds”) as well as the 2021 Refunding Bonds (Federally Taxable) (the “2021 Refunding Bonds”) was completed. The 2021 Building Bonds are being issued to finance capital improvements to the school district, while the 2021 Refunding Bonds are being issued to refinance a portion of the outstanding debt the district currently has for previous construction bonds.
As a part of the bond sale process, the Cedar Springs Public Schools bond rating was reviewed by S&P Rating Agency. The good news was received as the District received the strong bond rating of “A+”. This is a compliment to the District’s financial/management practices. The District also received a bond rating of “AA” for participation in the Michigan School Bond Qualification and Loan Program.
The District had great news concerning the total dollar amount to be deposited into the construction bank account to fund District capital improvements. The bond pricing, as well as the bond issuance costs incurred, came in $341,980.74 higher than what was budgeted. As a result, CSPS will have $32,152,849.74 to use toward the first series of capital improvements.
The total debt service for the 2021 Building Bonds also came in underestimate. The estimated total debt service (principal and interest) was $62,501,237.50. The actual total debt service is $44,072,404.44 for a total favorable variance of $18,428,833.06. This will allow the District to repay the debt related to these new bonds nearly four years earlier than previously anticipated, ultimately savings taxpayers this incredible sum of money.
The 2021 Refunding Bonds, which were sold to “refinance” $2,972,037.71 of existing debt, will save Cedar Springs taxpayers immediately. These bonds were sold at interest rates ranging from 1.02 – 1.56%, significantly less than the 3.00% the debt was being repaid it. We estimate this will save $260,987 in future tax collections.
June 2021 - Cedar Trails Elementary
Riteway Heating & Cooling began their work the second week of June with the new classroom unit ventilators and chiller. Students exited the building on June 9, and classrooms were being prepared on June 10. It's going to be a warm summer in the halls and classrooms of Cedar Trails, but students will enjoy air-conditioned spaces when they return on August 23!
June 2021 - Cedar Springs Middle School
Dean's Excavating has completed the first stages of earthwork, where our new drives and entrances have already taken place. Earlier this month, Grand Valley Concrete poured concrete curbs where a new entrance will meet with Northland Drive. Work is ahead of a strict timeline for completion by the second week of August.