Colorado Debates Negotiated vs. Competitive.

• Position: Colorado school districts' bond sales - Brief Article - Statistical Data Included

A report by a financial advisor and a former investment banker is criticizing Colorado school districts for their reliance on negotiated bond sales. Since 1995, only 9 percent of Colorado bonds have been sold competitively. The report specifically cited a December 1999 negotiated sale by Cherry Creek School District No. 5. By comparing the results of the sale to a similar issue sold competitively by the Boulder Valley School District in February 1999, the report concluded that Cherry Creek would have realized a $1.3 million present value savings if it had sold the bonds competitively. The savings would have been realized through 1) the...