Kentucky county school board approves $87 million in bonds

The Warren County Board of Education in Kentucky approved issuance of $87 million in general obligation bonds last week.

These will be among the first GO bonds issued by a Kentucky school district since the state government passed a law allowing them to sell GOs in April, to give school districts a method to address rising construction costs.

The general obligation bonds are scheduled to be sold competitively Sept. 19, with Warren County Public Schools Finance Corp. as issuer, said Chris McIntyre, Warren County Public Schools chief financial officer.

Redenering of the cafeteria planned for the seventh through 12th grade facility in Warren County, Kentucky, that will be funded by bonds to be sold in September.

Robert W. Baird & Co. will serve as the municipal advisor and Steptoe & Johnson will be the bond counsel.

The bonds will have maturities out to 20 years, McIntyre said.

From the proceeds, $80 million will be used to create a new seventh to 12^th grade facility and $7 million will be used for energy savings projects at several schools, McIntyre said.

While the bonds have not yet been rated, Moody’s Ratings rates Wayne County School District Aa2.

In explaining its rating on the district, Moody’s pointed to a strong local economy with a growing population. School enrollment has gone up an average of 1.6% a year for the last three years and the district expects continued growth. District residents have average income and wealth levels, the agency said.

Moody’s said the district has a credit weakness in fund balance and liquidity at around 13% of annual revenue, which is below the median for the Aa category.

However, the ratings agency said the district’s long-term liabilities are 211% of annual revenues, which is less than the 340% median for the Aa category.

The district plans to issue $45 million in lease revenue bonds for an elementary school in late 2024 or early 2025, Moody’s said.

The district has an average daily attendance around 17,000 students.

On Aug. 20, the Wolfe County Board of Education priced a $6 million GO bond and on Aug. 22 Kenton County School District priced a $26.7 million GO bond.