Business Services / Finance

Simply put, bond refunding and reissuing means paying off a bond in full and then reissuing it at a lower interest rate in order to save taxpayer dollars.This is not the same as refinancing a home mortgage.

Bonds are commonly issued by school districts as a way to fund Long-Term Facilities Maintenance projects, building projects or other capital projects. 

The School Board of Robbinsdale Area Schools voted unanimously to approve a resolution for bond refunding and reissuing during its regularly scheduled meeting on Monday, Sept. 21, 2020. This will save taxpayers an estimated $1.5 million dollars over the next 11 years due to current low interest rates.

All of this savings will go to the benefit of district resident taxpayers and businesses in the district through reductions in future debt-related tax levies and cannot be used for any other district purpose by Minnesota State Statute.

The District did not extend the original maturity date of the refunding bonds. The original maturity dates of the refunding bonds is the same as the maturity date of the refunded and reissued bonds.
 
Additionally, the district has never missed a debt payment. The annual tax levy includes amounts to make required debt service principal and interest payments for each upcoming year and can only be used for that purpose. All debt activity is tracked, reported and audited in a separate fund, and not commingled with any other district funds.
 
The School Board will be updated on the actual savings prior to voting to accept the low interest bid at its regularly scheduled meeting on Monday, Oct. 19. 

- Oct. 15, 2020
 

Community members had an opportunity to learn more about school finance, including changes in special education cross-subsidies and the impact of open enrollment during a virtual discussion on Thursday, Oct. 8. 

The discussion featured state experts Dr. Tom Melcher and Paul Ferrin from the Minnesota Department of Education (MDE). The pair discussed specific impacts for Robbinsdale Area Schools and responded to questions from the audience. 

If you weren't able to join us, a recording of the discussion is posted below. Click here to review the PowerPoint presentation.  Click here to read a transcript.
 

 

Tom Melcher was the School Finance Director at the Minnesota Department of Education (MDE) for four decades. He retired in February 2020, but continues to work part-time to assist with the transition to new division leadership. He also provides support to the Commissioner’s School Finance Working Group. Before joining MDE, he was an assistant business manager with the Collier County, Florida Public Schools. Melcher earned a Bachelor of Science Degree in Economics from the University of Wisconsin-Madison and a Ph.D. in Educational Leadership from the University of Florida.

Paul Ferrin is currently the supervisor of the Special Education Funding and Data workgroup at MDE. He has worked at the department since 2013 in various roles including monitoring special education expenditures and providing data analytics to the special education funding workgroup. Ferrin earned a Bachelor of Science in Actuarial Science from the University of Minnesota and a Bachelor of Science in Accounting from Metropolitan State University.

- Oct. 11, 2020
 

School districts, charter schools and educational cooperatives are required to have an annual independent financial audit, to submit audited financial data to the Minnesota Department of Education (MDE) electronically, and to submit all required components of the audit report to MDE and to the Office of the State Auditor.

The Comprehensive Annual Financial Report (CAFR) of Independent School District No. 281, Robbinsdale Area Schools presents the financial position of the District at the end of each fiscal year (June 30) and the results of its operations for the fiscal year then ended.

The annual report (CAFR) is audited by a firm of licensed certified public accountants. State law requires the District to publish a complete set of audited financial statements within six months of the close of the District’s fiscal year.

Fiscal Year 2019

• Comprehensive Report (PDF)
• Audit Report (PDF)

Fiscal Year 2018

• Comprehensive Report (PDF)
• Audit Report (PDF)
   

Fiscal Year 2017

• Comprehensive Report (PDF)
• Audit Report (PDF)

School districts, cities with a population over 500, counties, the Metropolitan Council, the Metropolitan Airports Commission, the Metropolitan Mosquito Control District and certain regional library authorities are required to hold annual public Truth-in-Taxation meetings.

2019 Presentation

2018 Presentation

2017 Presentation

Minnesota Statutes, section 123B.10, requires that every school board shall publish the subject data of this report.

Fiscal Year 2020-2021

Fiscal Year 2019-2020

Fiscal Year 2018-2019

Fiscal Year 2017-2018

Instructional Support Review, April 2015

Project Objectives and Scope

Baker Tilly was asked by the District to analyze spending relative to instructional support. Our review included the following objectives:

• Enhance operational efficiency
• Reduce expenditures
• Create optimal organizational effectiveness through the use of a Functional Analysis Approach
• Examine the above in a manner that controls the potential impact on instructional support and/or student achievement

Oct. 13, 2020

Standards and Poor's (S&P) conducted a credit profile and RatingsDirect summary due to the sale of general obligation facilities maintenance bonds and alternative facilities refunding bonds sold in October 2020, per unanimous approval of the School Board.

Rating Action

S&P Global Ratings assigned its 'AAA' long-term (based on the state of Minnesota's credit enhancement) rating, with a negative outlook, and 'A-' underlying rating, with a stable outlook, to Hennepin County Independent School District (ISD) No. 281 (Robbinsdale Area Schools), Minn.'s series 2020A general obligation (GO) facilities maintenance bonds and series 2020B GO alternative facilities refunding bonds."

Stable Outlook

Downside scenario
If the district is unable to continue to rebuild its reserves and returns to structural imbalance, we could lower the underlying rating. However, we do not expect to change the rating within the two-year outlook timeframe.

Upside scenario
A higher underlying rating would most likely be predicated on the district's enrollment stabilizing and reserves being at a level more commensurate with those of higher-rated peers. Additionally, the formalization, and adherence to, policies and practices is necessary for upward rating movement.

When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction.  When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account on the same day we receive your payment, and you will not receive your check back from your financial institution.  This change was made beginning March 1, 2011.