School Deal to Retire Notes

The Columbus School District is preparing to enter the market in the next few weeks with $75 million of construction and improvement bonds that will be used to retire notes issued last year.

Voters last November approved the district’s request to borrow $162 million. In February, it issued $60 million of notes and is expected to issue the remaining $27 million by the end of the year.

Ahead of the sale, Moody’s Investors Service affirmed the bonds’ Aa3 rating with a stable outlook. The rating reflects stable finances and the recent voter approval of a new property tax levy, which is expected to generate $77 million a year, Moody’s said. The money will be used to fund reserves, enhance programs, and reduce class sizes.

The district will likely continue to issue debt in the future as part of its 15-year capital plan. Moody’s expects the debt position to remain manageable, given its taxable resources. The district has a total of $436 million of debt.

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