Dexter Community Schools Sells its Bonds

Dexter Community Schools took a big step in building and improving its schools and facilities with the sale of the 2025 School Building and Site Bonds.

The DCS Board of Education announced on Sept. 23, the “successful sale of its 2025 School Building and Site Bonds, representing the first series of bonds issued under the May 6, 2025 voter authorization.”

In their announcement, the school board said, “The Bonds will generate nearly $66.7 million of proceeds for the purpose of building and improving schools and facilities, including additions, secure entryways, classrooms, arts and athletic spaces, an indoor athletic facility, and a maintenance building; updating playgrounds, fields, and other sites; purchasing buses; installing technology and infrastructure; and covering bond issuance costs.”

When a school district sells bonds, it’s borrowing money from investors to fund large capital projects that will be paid off over a certain amount by the generated tax revenue each year.

DCS said the Bonds were purchased by a number of the most reputable and well-recognized investors from across the country, which included bond funds, money managers, trust companies, and individuals. The bonds were sold at a true interest rate of 4.38 percent with a final maturity of 2055 (a repayment term of approximately 30 years).

In preparing to sell the Bonds, DCS said it worked with its municipal advisor, Baker Tilly Municipal Advisors, LLC, to request that S&P Global Ratings (S&P) provide a credit rating for the Bonds.

DCS said S&P assigned the bonds an “AA-” underlying rating based on the District’s conservative budgeting and maintenance of very healthy reserves in recent years. S&P also assigned the Bonds an “AA” rating based on the District’s participation in the Michigan School Bond Qualification and Loan Program.

DCS said its financing was conducted by the Michigan investment banking office of the brokerage firm, Stifel, the municipal advising firm, Baker Tilly Municipal Advisors, LLC and the law firm serving as bond counsel, Miller, Canfield, Paddock and Stone, P.L.C.