Lindbergh OKs bonds to fund Proposition 4
The Lindbergh School District Board of Education recently awarded the sale of $14.1 million in general obligation bonds to Wells Fargo.
In an open and competitive bond sale, as recommended by the state auditor, the district received seven bids, according to a district news release. The interest rate for general obligation bonds is the lowest since August 1968.
"This means the Lindbergh taxpayers will pay less interest on bonds, making this the best time to finance construction,'' Assistant Superintendent of Finance Pat Lanane stated in the release.
Moody's Investors Service assigned a Aa2 rating to the Lindbergh School Dis-trict's $14.1 million General Obligation Bonds, series 2003.
This is the highest rating assigned to any school in the state, and remains the same as the rating for the bonds the district has sold in the past.
This issue, which was voted on as Prop-osition 4, will provide for building improve-ments across the district, including parking and traffic flow improvements all schools, a new library at Truman Elemen-tary, and a new swimming pool at the high school.
Lindbergh is one of only eight districts in the state to receive the Aa2 bond rating.
The rating is based on Lindbergh's strong financial reserves, continued tax base growth, and low level of bond debt, the news release stated.
"The district's trend of maintaining large fund balances provides a good financial cushion. (We) consider a credit positive that the district maintains significant operating levy flexibility, as they have not utilized 27-cents per $100 assessed valuation of authorized taxing levy (approximately $2.6 million), opting instead to rollback the levy,'' according to Moody's.
The investors service also stated that it expects the district to continue to manage its debt position favorably, due to limited borrowing requirements and a growing tax base.