Dexter Community Schools Sells 2012 Refunding Bonds

Dexter Community Schools will save taxpayers over $6 million and make lower debt payments over the next several years after the successful sale of its 2012 refunding bonds.

Superintendent Mary Marshall commended the effort of the Board of Education and Chief Financial Officer Sharon Raschke for their focus on managing the district debt.

“The ability of the district to refund these bonds at a lower rate and save the taxpayers more than $7 million in payments is the result of a continued focus on fiscal responsibility,” Marshall said. “Dexter residents will directly feel the impact of these bond sales through earlier pay-off of outstanding bond debt. The refunding process does not increase the availability of funds available to the district for bond related projects – it is the taxpayer who benefits.”

In preparing for the 2012 refunding bonds, Marshall said the school district worked with its financial advisor, H.J. Umbaugh & Associates, and was able to sell the bonds due to its 'AA-' rating from Standard and Poor's, a national financial services firm.

The agency cited the school district’s strong per capita income and market value indicators, good financial management practices and strong general fund reserves in their rational for maintaining the rating of Dexter Community Schools.

Earlier this year, the district sold bonds to refund all of its outstanding 2003 refunding bonds. These 2012 school building and refunding bonds reduce the district's interest expense by approximately $992,000 and will occur through lower debt payments over the next eight years with a final maturity of 2019.

Brenda Voutyras, managing director with the brokerage firm Stifel Nicolaus states, “Dexter Community Schools bonds were well received by the market. We were able to take advantage of our current low rates that resulted in a savings level that exceeded the goals of the district.”