Final General Obligation Bond Sales
On January 14, 2020, the District completed the sale of $65,925,000 of General Obligation Bonds Series 2020. This sale is the third and final sale of general obligation bonds from the September 12, 2017 bond referendum of $191,525,000 as approved by district voters. The other general obligation bond sales were completed on January 8, 2019 (Series 2019) for $66,645,000 and November 29, 2017 (Series 2017C) for $58,955,000. The District holds the highest bond rating for any school in the State of Iowa as awarded by Moody’s Investors Service. This high rating and favorable market conditions have allowed the District to sell these bonds at interest rates lower than projected in 2017 and realize a combined premium of $13,885,431.45 on the three sales. The bond proceeds will fund the District’s 10-year Facility Master Plan (FMP) approved in 2013 and the District anticipates completion of these projects during the calendar year 2021. Premium amounts realized from the sales will be used for alternative project options of the FMP.
During the bond referendum process, the District projected to incur a debt service property tax levy of up to $1.95 per $1,000 of taxable valuation. However, the favorable market conditions and strong District financial rating noted above have allowed the District to complete the sales at lower than anticipated interest rates, with the savings impacting the taxpayers within our community. The maximum projected tax rate from the sale of these bonds is anticipated to be $1.80 per $1,000 of taxable valuation.
For more information on the District's September 12, 2017 bond referendum, visit www.IowaCitySchools.org/2017Bond.