Mike Burns of R. W. Baird & Co. gave news of the refunding results at the Northmor Local School District’s Dec. 20 board meeting.
Burns called it “Great news for the board and district taxpayers.” The 2008 bond issue for new buildings has improved its rating at Moody’s Investor Services Corp. Burns said the bonds have dropped their “negative outlook” rating and “are now rated A 2 and on the cusp of being upgraded to A1 in the future.”
The improved rating is because of the work of the district’s Treasurer/CFO, Tammi Cowell and Superintendent, Chad Redmon. Burns said they “have been turning around the district’s financial situation.”
Cowell said this refunding of bonds was done for the purpose of generating savings for the district and for the tax payer. The refunding is saving the Northmor District $2.25 million over the remaining term of the bonds. This will go to the taxpayers by way of millage reduction. Burns projected a possible reduction in millage of .65 to .73 percent. However, the exact percent is something yet to be worked out with the County Auditor.
Burns commended the district’s administration for their excellent preparation for the Moody’s presentation in Chicago as well as for their strong financial management. He said that the fact that they traveled to Chicago to make the presentation in person made a very good impression on the Moody’s rating agency.
Burns estimated the total cash saving to the district being $2,253, 791. The Annual cash savings to the district 2017-2025 is $139, 080. The official statement of the bond rating is Aa2/A2 with the required state credit enhancement.
Northmor School District Board and Administrators hold a mock up of a check representing the savings of money for taxpayers. Seated are from left, Superintendent, Chad Redmon; Board Presisent Jeff Whisler; Treasurer/CFO Tammi Cowell. Standing are Board Members Tim Bachelder, Carlyle Smith and Carolyn Beal.
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