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Bond 2023

Bond Priorities

Committee Minutes

South Whidbey School District completes municipal bond financing


On June 27th, South Whidbey School District successfully executed a public sale of $27,305,000 of Unlimited Tax General Obligation Bonds.  This sale represents the first issuance of bonds approved by district residents at the November 7, 2023 special election.  District voters authorized a total of $79,800,000.  The District will issue the remainder of the authorization over the 1-3 years as projects are undertaken and funds are needed for construction.

Over the last  five years, District officials prepared a comprehensive plan for these capital improvements.  Estimates provided to district residents prior to the November 7, 2023 election forecast a borrowing cost for this sale of 5.59%. The plan projected a future bond tax rate of $0.72 / $1,000 of assessed value.  

Market conditions on the day of sale proved advantageous as the District achieved an actual borrowing cost of 3.94%, which projects to a future bond tax rate of $0.59 / $1,000. 

On June 18, 2024, the district completed a major step in the process of preparing for this issuance of debt when it received an underlying credit rating of A1, issued by Moody’s Investors Service (“Moody’s”). The rating category is the fifth highest rating a municipal entity may receive, placing the South Whidbey School District credit rating in the higher tiers of all municipal entities.

Investors relied on these ratings, and the associated credit opinion created by the rating agency, when deciding whether to invest in the district’s municipal bond offering. With municipal bonds, investors view the credit rating as an indication of risk (i.e., likeliness to default on payments). A higher bond credit rating results in lower interest rates due to investor’s belief this is an indication of reduced risk.
 

In the rating agency’s evaluations, they noted many factors that led to the high credit rating, including:

  • Healthy resident income and wealth

  • Strong administrative governance as evidenced by a sound financial position

  • Consistent voter support for levies

Additionally, the district secured an enhanced rating for the bonds via participation in the Washington State School District Credit Enhancement Program. This program, which carries a AAA rating from Moody’s (highest possible), is only available to Washington school districts that issue voter approved debt. This enhancement further improved investor demand for the bonds, lowering the ultimate borrowing cost for the debt.

“South Whidbey’s school board and administration have worked diligently to secure all the pieces necessary to make this a successful bond sale. Success as measured by the ultimate borrowing cost for the bonds. The lower the cost, the lower the tax burden incurred by our community. All of our efforts strive to provide a result that truly honors the community’s support,” said Dr. Jo Moccia, Superintendent.

Thank you to our South Whidbey Community. The Island County General Election results are certified and final. The Bond PASSED by 60.31%. The district, staff, students, and all of the South Whidbey School Community truly appreciate all of the efforts put into this election. See more at: https://www.islandcountywa.gov/.../View/4051/Current_Results

We have created a diverse steering committee to help with the next steps.  The following folks have volunteered and been selected:

Bond Videos

Bond Slides

June 14, 2023 Workshop Bond Discussion
Bond TImeline
First page of the PDF file: SWSD2023BondTakeAway1
Facilities 10 year plan
bond 2023

Potential options. Not exact building plans.