Lebo to wrap $32.9 million bond issue
The Mt. Lebanon school board finalized the structure of its $32.9 million bond issue at the Aug. 12 discussion meeting. The board opted for a wrap structure and capitalized interest that will hold the millage impact on taxpayers to a .55 mill increase spread over three years.
Tim Frenz, director of public finance with Janney Capital Markets, explained that had the district chosen a level payment structure, it would face a .85 mill increase spread over the same three years. Total interest expense, however, would be about $5 million lower.
According to Frenz, Moody’s Investor Service rated the issue AA1. “This is the second highest rating available. To give you an idea of where you stand, the only other district in the area with a comparable rating is Upper St. Clair,” he said. He added that interest rates have remained substantially the same since his July 15 presentation to the board.
Director of fiscal services Jan Klein said she recommended the wrap structure for the issue, stating it would provide better opportunities for refinancing the issue, as well as have a more favorable millage impact on the community.
The bonds will be auctioned Aug. 19, with board approval of the sale to follow at the meeting that evening.
The board also announced its approval of Alyssa DeLuca as director of the Mt. Lebanon School District Capital Campaign and Executive Director of the Mt. Lebanon Foundation for Education (MLFE). The campaign has a goal of raising $6 million in capital and endowment funds.
DeLuca previously served as director of development at the Carnegie Museum of Natural History. She is set to join the district Aug. 30.