Superintendent Teresa Weatherall Neal is proud to announce the successful sale of the second tranche of Grand Rapids Public Schools’ $175 million of bonds approved by voters in 2015.
GRPS went to market with approximately $77 million face value of bonds to sell and had buy orders for over $370 million of bonds—an over subscription of almost 5 times the amount to sell. This over subscription resulted in a Total Interest Cost (TIC) to the District of 3.44% which saves taxpayers approximately $2.1 million in net interest cost from what had been estimated prior to the sale.
The additional bonds outstanding is estimated to not increase debt millage, which is currently at 4.3 mills. When GRPS proposed this bond to voters in November of 2015, they had estimated that the issuance of the full $175 million would add 2 mills to the current debt levy, which at that time was 3.8 mills. In the end, it added only .5 mills.
“The sale was a tremendous success,” says Chief Financial Officer for the district, Larry Oberst. “Because of the demand for the bonds, we were able to save the District and taxpayers, $2.1 million in interest costs. The savings achieved today is truly a testament to the fiscal stewardship of the Board of Education and this district’s commitment to being sound managers of the taxpayers’ dollars.”