On Tuesday, October 7, 2025, Euclid City Schools entered the municipal bond market by issuing $52,880,000 of bonds. The purpose of this transaction was to generate debt service savings on previously issued bonds, and will save residents and taxpayers $4.97 million. Specifically, the District is refunding a portion of its 2014 Bonds and its 2017 Bonds that were originally issued for new capital. The savings generated from the sale will directly reduce the District’s debt service obligations, which were funded through dedicated property tax levies. Since these levies were restricted to servicing bond debt and cannot be used to support general operational expenses, residents will experience a property tax discount as soon as the bond repayment is made.
In Summer 2025, Euclid City Schools recognized a favorable interest rate environment as tax-exempt rates began to trend downward, and capitalized on the market. In the weeks leading up to the bond sale on Tuesday, October 7th, interest rates continued to decline and eventually stabilized. This rate cut contributed to a strong and supportive market environment for the District’s refunding bond issuance.
During the October 7th bond sale, Euclid City Schools received strong investor interest, with orders submitted for more than three times the $52,880,000 amount offered. Due to the high level of demand, interest rates on select maturities were reduced, resulting in approximately $100,000 in additional savings. Investor response to the District’s refunding bonds was overwhelmingly positive, reflecting strong market confidence in the offering.
Below are two significant points summarizing the refunding outcome:
$56,065,000 of outstanding 2014 and 2017 bonds, costing the taxpayers on average 4.70%, were refunded with $52,880,000 of refunding bonds costing taxpayers 3.88%
Savings generated from the refunding totaled $4.97 million which equates to approximately $3.5 million in present value dollars, or 6.31% of refunded bonds (well in excess of the 3-5% savings threshold GFOA recommends)