DCSD Announces Bond Sale

Douglas County School District Announces Bond Sale
Posted on 01/29/2019

The Douglas County School District (DCSD) has sold $249,975,000 in general obligation bonds as approved by voters in the November 2018 election. The proceeds from the bonds provide one-time funds for capital needs such as security upgrades, facility repairs, classroom furnishings, buses and technology.

“Today’s bond sale is a huge step in the right direction for the students, staff, parents and taxpayers of Douglas County,” said DCSD Chief Financial Officer Scott Smith. “There was high demand in the marketplace for the school district’s bonds. That, along with our strong credit rating, allowed us to secure a low interest rate and begin to move forward with much-needed improvements in our district.”

Total bond proceeds from the sale will be approximately $289 million. While the face value of the bonds is just under $250 million, based on the credit strength of DCSD and the current interest rate environment, the district’s bonds generated a premium, resulting in more funding for the school district to address additional capital needs. The result of today’s sale does not impact DCSD’s pledge of a no-new-taxes bond.

Jason Simmons, Managing Director at Hilltop Securities and financial advisor for DCSD, said the school district’s 2019 bonds were offered to investors using a structure that reflected current market demand.

“The structure of the bonds, combined with the high credit ratings of the Douglas County School District, generated significant interest from a broad group of investors, helping the school district achieve very favorable results that provide benefits to the district taxpayers,” said Simmons.

The bonds carry a “Aa1” rating from Moody’s and a “AA+” from Fitch, representing the high credit quality of the school district due to strong financial management practices and a robust tax base. No other school district in Colorado currently has a higher credit rating than DCSD.

All bonds were sold in alignment with ballot language from the recent election and carry a true interest cost (TIC) of 3.07%. The school district will have access to the funds from the sale on February 7.

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In compliance with Titles VI & VII of the Civil Rights Act of 1964, Title IX of the Education Amendments of 1972, Section 504 of the Rehabilitation Act of 1973, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act, the Genetic Information Nondiscrimination Act of 2008, and Colorado law, the Douglas County School District RE-1 does not unlawfully discriminate against otherwise qualified students, employees, applicants for employment, or members of the public on the basis of disability, race, creed, color, sex, sexual orientation, marital status, national origin, religion, ancestry, or need for special education services. Discrimination against employees and applicants for employment based on age, genetic information, and conditions related to pregnancy or childbirth is also prohibited in accordance with state and/or federal law. Complaint procedures have been established for students, parents, employees, and members of the public. The School District's Compliance Officer and Title IX Coordinator to address complaints alleging sexual harassment under Title IX is Aaron Henderson, 620 Wilcox Street, Castle Rock, Colorado, complianceofficer@dcsdk12.org, 720-433-1083.

Outside Agencies

Complaints regarding violations of Title VI, (race, national origin), Title IX (sex, gender), Section 504/ADA (handicap or disability), may be filed directly with the Office for Civil Rights, U.S. Department of Education, 1244 North Speer Blvd., Suite 310, Denver, CO 80204. Complaints regarding violations of Title VII (employment) and the ADEA (prohibiting age discrimination in employment) may be filed directly with the Federal Office of Equal Employment Opportunity Commission, 303 E. 17th Ave., Suite 510, Denver, CO 80202, or the Colorado Civil Rights Commission, 1560 Broadway, Suite 1050, Denver, CO 80202.