MuniMetrics MVP v6.6.5

# Senior Credit Analyst Summary ## 1. Executive Credit View Preliminary credit view: the excerpt supports a strong bond-level security profile based on a voted unlimited-tax general obligation pledge, S&P “AAA” rating, and full faith, credit and revenue pledge of the School District. However, the provided excerpt is mainly front-matter and temporary-funding scan output; it does not include core operating, tax base, enrollment, debt burden, pension/OPEB, or audited financial trend data needed for a final credit thesis. Preliminary implication: **Watch / potentially Buy pending full credit review.** The security and rating are strong, but the excerpt is insufficient to confirm recurring financial strength or assess exposure to expiring ESSER and other federal relief funds. ## 2. Issuer and Bond Facts Extracted - **Issuer:** Dublin City School District, Franklin, Delaware and Union Counties, Ohio. Page 1. - **Bond name:** School Facilities Bonds, Series 2024. Page 1. - **Par amount:** $95,000,000. Pages 1-2. - **Bond type:** General Obligation — Unlimited Tax; voted general obligation debt. Page 1. - **Voter authorization:** Voted November 7, 2023. Page 1. - **Security pledge:** Full faith, credit and revenue of the School District are irrevocably pledged for prompt payment of principal and interest. Page 1. - **Purpose:** School Facilities Bonds. More detailed use of proceeds is **not identified in provided excerpt.** - **Maturity range:** December 1, 2024 through December 1, 2053. Page 2. - **Serial bonds:** $58,195,000 maturing 2024-2044. Page 2. - **Term bonds:** - $14,565,000 5.00% term bonds maturing December 1, 2048. Page 2. - $22,240,000 4.00% term bonds maturing December 1, 2053. Page 2. - **Rating:** S&P “AAA.” Page 1. - **Underwriter:** RBC Capital Markets, LLC. Pages 1 and 3. - **Bond counsel:** Bricker Graydon LLP. Pages 1 and 3. - **Municipal advisor:** Baker Tilly Municipal Advisors, LLC. Pages 1 and 3. - **Registrar / paying agent / transfer agent:** The Huntington National Bank, Columbus, Ohio. Pages 1 and 3. - **Book-entry:** Book-entry only through DTC. Page 1. - **Interest payment dates:** June 1 and December 1 of each year, beginning June 1, 2024. Page 1. - **Tax status:** Interest is excluded from gross income for federal income tax purposes, assuming continuing compliance with covenants and accuracy of representations; not an item of tax preference for AMT purposes, though interest is included in adjusted financial statement income of certain corporations subject to corporate AMT. Interest and profit on sale, exchange, or disposition are exempt from certain Ohio and local taxes. The Bonds are not designated as qualified tax-exempt obligations. Page 1. ## 3. Security and Bond Structure Analysis The Bonds are **voted unlimited-tax general obligation debt** of the Dublin City School District. The District’s **full faith, credit and revenue are irrevocably pledged** for timely principal and interest payment. This is a strong bondholder security feature because the pledge is not limited to a narrow revenue stream in the excerpt. Page 1. Structural features identified: - **Unlimited-tax GO pledge:** Strongest identified bond-level protection. Page 1. - **Voted authorization:** Bonds were voted November 7, 2023. Page 1. - **Serial and term structure:** Serial maturities from 2024 through 2044, with term bonds due 2048 and 2053. Page 2. - **Optional redemption:** Bonds maturing on or after December 1, 2034 are subject to optional redemption prior to stated maturity. Specific redemption price/date terms are **not identified in provided excerpt.** Page 1. - **Mandatory sinking fund redemption:** Term bonds maturing December 1, 2048 and December 1, 2053 are subject to mandatory sinking fund redemption. Specific sinking fund schedule is **not identified in provided excerpt.** Page 1. - **Book-entry-only format:** DTC book-entry system; no physical delivery to ultimate purchasers. Page 1. - **Registrar/paying agent:** The Huntington National Bank. Pages 1 and 3. Bond-specific limitations from the excerpt: - Detailed debt service schedule is **not identified in provided excerpt.** - Tax levy mechanics, collection procedures, and any statutory levy protections are referenced but not included in the excerpt. - No additional bonds test, debt limit analysis, or overlapping debt burden is provided in the excerpt. ## 4. Credit Strengths Supported credit positives include: 1. **S&P “AAA” rating** on the Bonds. Page 1. 2. **Voted unlimited-tax GO security**, which is generally a strong municipal bond pledge. Page 1. 3. **Full faith, credit and revenue pledge** of the School District for prompt payment of principal and interest. Page 1. 4. **Voter approval obtained** on November 7, 2023, supporting legal authorization for the debt. Page 1. 5. **Clear professional financing team** identified, including RBC Capital Markets as underwriter, Bricker Graydon as bond counsel, Baker Tilly as municipal advisor, and Huntington as paying agent/bond registrar. Pages 1 and 3. 6. **Long final maturity with serial amortization component**, with serial maturities through 2044 and term bonds thereafter. Page 2. 7. **Tax-exempt treatment** for federal income tax purposes, subject to compliance, and exemption from certain Ohio and local taxes. Page 1. ## 5. Credit Risks and Watch Items Material risks and watch items identified or implied by the excerpt: 1. **Temporary federal relief exposure:** The District received ESSER/CARES/ARPA-related reimbursement funds totaling at least approximately $16.55 million based on the provided scan. Page 25. The use of underlying expenditures is not identified in the provided excerpt. 2. **Potential nonrecurring support:** ESSER funds are temporary and the most recent allocation must be spent or encumbered by September 30, 2024. Page 258. Analyst should determine whether these funds supported payroll, recurring services, deficit mitigation, reserves, or one-time costs. 3. **Operating trend data not provided:** Audited operating results, fund balance trends, cash position, and budget-to-actual performance are **not identified in provided excerpt.** 4. **Tax base and economic profile not provided:** Assessed valuation, taxpayer concentration, income, wealth indicators, unemployment, and regional economic trends are **not identified in provided excerpt.** 5. **Enrollment and demographic trends not provided:** Key school district demand indicators are **not identified in provided excerpt.** 6. **Debt burden not provided:** Existing debt, overlapping debt, debt service levy requirements, amortization metrics, and future capital needs are **not identified in provided excerpt.** 7. **Pension and OPEB liabilities not provided:** Ohio school district pension/OPEB exposure is a material sector consideration, but liability, contribution, and funding data are **not identified in provided excerpt.** 8. **Disclosure caveats:** The Official Statement states information contains estimates and opinions, is subject to change, and no implication should be made that no changes occurred after the date of the Official Statement. Page 4. 9. **Market and rating risk:** The Official Statement notes the Bonds are subject to changes in market value due to market conditions or changes in the School District’s financial position, and market price could be adversely affected by downward rating revision or withdrawal. Page 5. ## 6. Temporary / Artificial Funding Exposure ### 1. CARES Act / COVID-19 assistance - **Source / program:** Coronavirus Aid, Relief, and Economic Security Act and other COVID-19 legislation. - **Amount:** Not identified in provided excerpt for this general item. - **Fiscal year or period:** COVID-19 response period; specific fiscal year not identified in provided excerpt. - **Apparent use of funds:** Assistance to states in addressing adverse impact of COVID-19 on local governments; District-specific use not identified in provided excerpt. - **Classification:** Temporary Funding / Unclear. - **Risk level:** Medium. - **Why it matters to recurring credit strength:** COVID-era federal aid is nonrecurring. The excerpt does not show whether these funds were used for one-time expenditures or to support recurring operations, payroll, reserves, or deficit backfill. This requires follow-up before relying on reported financial performance as recurring. - **Page citation:** Page 24. ### 2. ESSER I reimbursement under CARES Act - **Source / program:** Elementary and Secondary School Emergency Relief Fund administered by the State under the CARES Act. - **Amount:** $1,113,042.62. - **Fiscal year or period:** Not identified in provided excerpt. - **Apparent use of funds:** Reimbursement of expenditures; underlying expenditure categories not identified in provided excerpt. - **Classification:** Reimbursement Funding / Temporary Funding. - **Risk level:** Medium. - **Why it matters to recurring credit strength:** Reimbursement funding can still mask recurring pressure if the reimbursed expenditures were payroll, recurring educational programming, operating backfill, or reserve support. The excerpt does not identify the expenditure type. - **Page citation:** Page 25. ### 3. ESSER II reimbursement under Coronavirus Response and Relief Supplemental Appropriations Act - **Source / program:** ESSER II administered by the State under the Coronavirus Response and Relief Supplemental Appropriations Act. - **Amount:** $4,753,431.37. - **Fiscal year or period:** Not identified in provided excerpt. - **Apparent use of funds:** Reimbursement of expenditures; underlying expenditure categories not identified in provided excerpt. - **Classification:** Reimbursement Funding / Temporary Funding. - **Risk level:** Medium. - **Why it matters to recurring credit strength:** Funding is federal emergency relief and temporary. Analyst should confirm whether the reimbursed costs were one-time pandemic costs or recurring salary, benefits, programming, deficit backfill, or reserve growth. - **Page citation:** Page 25. ### 4. ESSER III reimbursement under American Rescue Plan Act of 2021 - **Source / program:** ESSER III administered by the State under the American Rescue Plan Act of 2021. - **Amount:** $10,683,114.24. - **Fiscal year or period:** American Rescue Plan Act of 2021; exact District fiscal year recognition not identified in provided excerpt. - **Apparent use of funds:** Reimbursement of expenditures; underlying expenditure categories not identified in provided excerpt. - **Classification:** Reimbursement Funding / Temporary Funding. - **Risk level:** Medium. - **Why it matters to recurring credit strength:** This is the largest identified temporary funding item. If used for recurring staffing, recurring programs, operating deficit coverage, or reserve growth, reported results may overstate recurring operating strength after aid expires. - **Page citation:** Page 25. ### 5. ESSER relief funds spending deadline - **Source / program:** Federal Elementary and Secondary Schools Emergency Relief Funds. - **Amount:** Not identified in provided excerpt for the remaining allocation. - **Fiscal year or period:** Began in fiscal year 2020; most recent allocation must be spent or encumbered by September 30, 2024. - **Apparent use of funds:** Not identified in provided excerpt. - **Classification:** Temporary Funding. - **Risk level:** Medium. - **Why it matters to recurring credit strength:** The