Richland One Saving Taxpayers $5 Million, Earns 'AA' Credit Rating

Richland School District One is pleased to announce that taxpayers will benefit from more than $5 million in debt service savings over the next 19 years, as a result of the district’s successful refinancing of general-obligation bonds.

The refinanced bonds were approved by Richland One voters in the 1996 referendum, with those bonds being sold in 1997 and 1999. The refinancing bonds in the amount of $62,490,000 will be repaid at a true interest cost of 4.04%.

"We were very pleased with the results of the bond refinancing," said school board Chairman Dr. Jasper Salmond, who accepted the bids on behalf of the district. "As a result of watching the bond market closely, we were able to save the school district taxpayers millions of dollars. This bond transaction is an example of the school district’s being very aggressive in saving money."

In connection with the sale of the refinancing bonds, the school district’s credit rating was upgraded by Standard & Poor’s Rating Service from a "single A" rating to a "double A" rating. At the same time, Moody’s Investors Service affirmed its "AA" credit rating of the district.

"Being recognized as with a ‘double A’ credit rating by both Moody’s and Standard and Poor’s is a major accomplishment," said Diane McNabb of A.G. Edwards & Sons, Inc., the district’s financial advisor.

"Fewer than five school districts in the state currently have ‘double A’ credit ratings from two rating agencies," McNabb said. "Such a high credit rating helped the school district maximize the savings to its taxpayers in connection with the bond refinancing."