Members of the ASBSD Board of Directors received an overview of an expanded state program that increases the rating of capital outlay bonds or certificates issued to schools and provide them with better interest rates.
“Because of the rating advantage (offered through the program) you (school districts) save long term,” Templeton told the directors.
The program is optional for school districts to utilize and allows school districts to pledge State Aid payments as additional security for capital outlay bonds or certificate, which will have better interest rates due to the program’s AA+ rating.
To take advantage of the program, a school district would work with a bonding agent or banker on applying for the program and, if the district qualifies, the district’s bonding intermediary would proceed with the program with the help of the SDHEFA.
School districts can use the program for refinancing, as well as new debt.
“The program presents a great financial advantage to districts exploring a new building project or looking to refinance current bonds,” ASBSD Executive Director Wade Pogany said.
For more information on the program, contact SDHEFA Executive Director Don Templeton at email@example.com or at 605-224-9200 or Associate Director Dustin Christopherson at firstname.lastname@example.org or at 605-224-9200.