Media Contact: Mr. Frank E. Lams, Avondale Assistant Superintendent for Financial Services, 248.537.6008; Sue Briggs, Avondale Schools, 248.537.6041, susan.briggs@avondale.k12.mi.us; Barbara Fornasiero, EAFocus Communications, 586.817.8414; barbara@eafocus.com
Auburn Hills, Mich. – April 30, 2014 —The Avondale School District Board of Education is pleased to announce the successful sale of $29,010,000 of bonds. These bonds will be used to refund a substantial portion ($28,610,000) of monies owed to the State of Michigan under the School Bond Qualification and Loan Program and to complete the acquisition of technology ($400,000) approved by District voters in August of 2010.
The Avondale financial team, comprised of Avondale Assistant Superintendent for Financial Services, Frank E. Lams, financial advisor, H.J. Umbaugh & Assoc. and legal counsel, Miller Canfield, P.L.C. utilized the underwriting services of Stifel Nicolaus & Co. to place these bonds on the open market on April 3, 2014.
The Refunding Bonds are analogous to a homeowner refinancing his house to take advantage of lower interest rates. The District had been borrowing from the Michigan School Loan Revolving Fund (SLRF) at interest rates slightly above 3.5%. The Refunding Bonds carry interest rates ranging from 0.6% to 2.35%. This difference in interest will result in savings to the District’s taxpayers of at least $2,093,000 over the next thirteen years. The actual interest saved could exceed $7,000,000 overall depending on future property tax growth rates.
The $400,000 in “new money” bonds completes the issuance of bonds authorized by voters in August of 2010. These proceeds will be targeted at acquiring additional classroom technology to assist the District in implementing new on-line student assessments required by the federal No Child Left Behind legislation.
Dr. George Heitsch, Superintendent of Avondale, commented on the successful bond sale.
“Thanks to the foresight of the Board of Education and solid advice from both H. J. Umbaugh and Miller Canfield, we were able to proceed with this refunding, which will ultimately save district taxpayers in excess of $2 million,” said Heitsch. “This is part of our long range plan to enhance student learning experiences by providing quality facilities for our students and staff while maintaining fiscal responsibility to our community.”
Avondale School District Board of Education President Sean Johnson concurred.
“This is a great day for Avondale. The sale of these bonds will allow the District to purchase additional classroom technology while also being mindful of our duty to protect the financial wellbeing of the District,” said Johnson.
About Avondale School District
The Avondale School District is a collaborative community of teachers, staff and families working together to assure student success. The district, encompassing portions of Auburn Hills, Bloomfield Township, Troy and Rochester Hills, celebrates the richness of a diverse student population and strives to be a model school community that prepares students to be lifelong learners and contributing citizens to the world that awaits them upon graduation. Learn more about Avondale Schools, an AdvancED accredited district, at www.avondale.k12.mi.us.
