By Ben Marshall
Almost $2 million worth of state tax-exempt bonds are being made available to local investors by the Community R-VI School District.
The Community R-VI Board of Education has instructed its municipal bond underwriter, L. J. Hart & Company of St. Louis, to make the $1,850,000 General Obligation Bond Issue available to local individuals and institutional investors.
“We appreciate the strong vote of confidence we received from local patrons at the election and want the bonds to be available to them,” stated Superintendent Cheryl Mack.
These new money General Obligation Bonds were approved by the voters at the April 2 election for the implementation of safety and security measures in the two schools, repair or replacement of roofs and HAC systems, renovation of restrooms and locker room facilities, and the construction of an additional classroom in the Vo-Ag building.
“Since interest rates are attractive now and might increase in the future, the board wants to lock-in rates as quickly as possible,” stated Mack. “At the same time, we want all local investors who are interested in these bonds to have an opportunity to purchase them. And we want to alert them of our plans,” She continued.
The board selected the negotiated sale of the bonds in order to capture current market conditions because the proposed interest rates are fair. Mack said that the district will compare proposed interest rates with the national bond indexes, other Missouri issues, and those of other states to be certain that rates for the district’s bonds are favorable.
According to L.J. Hart & Company, the bonds are scheduled to mature from March 1, 2024 through March 1, 2039 and have interest rates ranging from 3 percent to 5 percent. The interest income from the bonds is exempt from federal and state of Missouri income taxes and the bonds are available in $5,000 denominations. These bonds are being sold on a first-come, first-served basis. Anyone interested in learning more about the Series 2019 Bonds can call the Community R-VI School District office at 855-708-7567, or L.J. Hart & Company at 800-264-4477 and request that a prospectus be mailed to them.
These bonds are to carry a “AA+” rating from Standard & Poor’s Corporation due to the district’s participation in the State of Missouri Direct Deposit Program coordinated through the Missouri Health and Educational Facilities Authority.
If interest rates decline in the future, the district can capture the full benefit because some of the bonds have an optional redemption. The financing proceeds are anticipated to be available to the district by May 8.