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At a regular meeting of the Marionville R-IX School District Board of Education on August 17, members approved a refunding bond resolution.
The resolution authorized the sale of $4,350,000 general obligation refunding bonds with reoffered yields ranging from 0.50 percent to 3.5 percent, compared to the reoffered yields on the series 2004 bonds and series 2007 bonds ranging from 3.75 percent to 5 percent.
As a result, the district reduces the future interest expense to taxpayers by about $573,671. The series 2011 refunding bonds are underwritten on behalf of the district by L.J. Hart and Company of St. Louis and were offered to area institutional investors.
Significant portions of the refunding bonds were purchased by UMB Bank for the benefit of its branch in Monett and by the Empire Bank of Springfield.
Dr. Larry Brown, school superintendent, expressed enthusiasm and support for the refunding option selected by the board of education.
“This plan keeps the principal payments identical to those of the series 2004 and series 2007 bonds and produces average savings of $38,244 each year from 2012 through 2027,” Brown remarked.
The fact that the district’s patrons will save $573,671 in interest savings for the series 2011 refunding is not all the savings the district’s patrons may realize. The series 2011 refunding bonds have a call feature in 2016 at no penalty.
“If interest rates are lower in 2016 or later, the district can take advantage of that. Meanwhile we are locking in these levels that are 1.8 percent lower than they were in 2004 and 2007. The five-year call feature on the series 2007 bonds is certainly proving valuable,” stated Larry Hart, bonding company president.
Officials with the company prepared the refunding proposal, and Brown explained how it can fit into the long range plans of the district. Brown mentioned that the three significant factors making the series 2011 refunding possible were the lower interest rates than in 2004 and 2007, the fact that both bond issues are subject to prepayment on March 1, 2012, at no penalty and the district’s ability to participate in the State of Missouri’s Direct Deposit Program.
This program makes it possible for the district to receive an AA+ rating from Standard and Poor’s Corporation on the refunding bonds. Brown complimented the board of education for its foresight in making the series 2007 bonds callable in five years.
The closing for the refunding bonds is to occur on August 31.
“It is nice to be able to save $573,671 of our taxpayers’ money. We also appreciate the strong support of our refunding from Empire Bank and UMB Bank,” commented Brown.
“Dr. Brown has always been an excellent steward of the district’s resources, which is why our school district is in better financial shape than many others. He looked at refinancing our bonds hoping to save us some money, and the savings turned out to be much more than any of us could have guessed. Now, we can look at doing some things we had not thought we could afford to do for a while,” said Marilyn McCroskey, board president.
At a regular meeting of the Marionville R-IX School District Board of Education on August 17, members approved a refunding bond resolution.
The resolution authorized the sale of $4,350,000 general obligation refunding bonds with reoffered yields ranging from 0.50 percent to 3.5 percent, compared to the reoffered yields on the series 2004 bonds and series 2007 bonds ranging from 3.75 percent to 5 percent.
As a result, the district reduces the future interest expense to taxpayers by about $573,671. The series 2011 refunding bonds are underwritten on behalf of the district by L.J. Hart and Company of St. Louis and were offered to area institutional investors.
Significant portions of the refunding bonds were purchased by UMB Bank for the benefit of its branch in Monett and by the Empire Bank of Springfield.
Dr. Larry Brown, school superintendent, expressed enthusiasm and support for the refunding option selected by the board of education.
“This plan keeps the principal payments identical to those of the series 2004 and series 2007 bonds and produces average savings of $38,244 each year from 2012 through 2027,” Brown remarked.
The fact that the district’s patrons will save $573,671 in interest savings for the series 2011 refunding is not all the savings the district’s patrons may realize. The series 2011 refunding bonds have a call feature in 2016 at no penalty.
“If interest rates are lower in 2016 or later, the district can take advantage of that. Meanwhile we are locking in these levels that are 1.8 percent lower than they were in 2004 and 2007. The five-year call feature on the series 2007 bonds is certainly proving valuable,” stated Larry Hart, bonding company president.
Officials with the company prepared the refunding proposal, and Brown explained how it can fit into the long range plans of the district. Brown mentioned that the three significant factors making the series 2011 refunding possible were the lower interest rates than in 2004 and 2007, the fact that both bond issues are subject to prepayment on March 1, 2012, at no penalty and the district’s ability to participate in the State of Missouri’s Direct Deposit Program.
This program makes it possible for the district to receive an AA+ rating from Standard and Poor’s Corporation on the refunding bonds. Brown complimented the board of education for its foresight in making the series 2007 bonds callable in five years.
The closing for the refunding bonds is to occur on August 31.
“It is nice to be able to save $573,671 of our taxpayers’ money. We also appreciate the strong support of our refunding from Empire Bank and UMB Bank,” commented Brown.
“Dr. Brown has always been an excellent steward of the district’s resources, which is why our school district is in better financial shape than many others. He looked at refinancing our bonds hoping to save us some money, and the savings turned out to be much more than any of us could have guessed. Now, we can look at doing some things we had not thought we could afford to do for a while,” said Marilyn McCroskey, board president.
