Bonds, a Look Back at 2022!

Bonds and overrides, supported by the community and local voters, are an important aspect of school finance, as they offer funding for facility needs and repairs, transportation, technology, and more. As PVSchools heads into a new year, take a look at a bond-related highlight from 2022!

On Wednesday, November 30, 2022, PVSchools sold its remaining School Improvement Bonds, approved by voters in 2019. During the several months prior, there was a significant amount of volatility in the markets. Price growth in the US surged at its fastest pace in 40 years, underpinned by supply bottlenecks, excessive fiscal/monetary stimulus, as well as soaring food and energy prices. However, many of the factors that led to significant inflation increases in 2022 were fading as the Fed’s interest rate hikes worked their way through the economy. Throughout November 2022, the bond market experienced noticeable improvement. Given the improvement and apparent strengthening in the market, it was determined to be a good time to sell district bonds.

The demand for the District's bond issues was significant - $513,950,000 of investor orders were received for the $86,585,000 in bonds offered, which was nearly 6x oversubscribed. The district's financial advisors and underwriters both shared that they hadn't seen a bond sale that successful in months. The True Interest Cost (TIC) of the Bonds was 3.65%. Proceeds from this sale will be used to construct, repair, and renovate school buildings and purchase instructional technology and pupil transportation vehicles. Bond dollars can not be used to support salaries or benefits.

School finance can be complicated, so check out these articles for a deeper dive!

Paradise 101 | Bonds and Overrides

Paradise 101 | Understanding Budgets