If you’re a current subscriber, log in below. If you would like to subscribe, please click the subscribe tab above.
Username and Password Help
The Marion County R-II Board of Education approved the sale of general obligation bonds during their meeting last week.
Prior to that the board of Education approved a parameters resolution at a regular meeting that authorized a final terms committee consisting of Jared Stewart, board president; Jason Keilholz, superintendent; and Larry J. Hart, CEO of L.J. Hart & Company.
The committee had the ability to approve the sale of $600,000 General Obligation Refunding Bonds to its Municipal Bond Underwriter, L.J. Hart & Company of St. Louis, Mo., within certain reoffering yield ranges.
On April 20, 2023, the final terms committee was able to lock in interest rates on the Series 2023 Refunding Bonds with reoffering yields ranging from 3 percent to 3.250 percent to constitute a new effective rate of 3.2336 percent, compared to an average interest rate of 4.6154 percent for the Series 2018 Bonds being refunded.
The Series 2018 Bonds were sold at premiums that produced $60,486 of additional funds for the projects.
Through this refinancing, the district reduces future interest expense by $59,155, which is an improvement of $4,484 from initial projections.
This $59,155 plus the savings of $64,237 from previous refundings and prepayments means that the district has saved $123,392 of interest expense since 1994.
Keilholz expressed enthusiasm and support for the refunding option selected by the board.
“This plan achieves significant savings and allows the district to capture better conditions in the municipal bond market for the benefit of our taxpayers,” he said. “It also preserves considerable flexibility for the district in the future for building improvements with no-tax rate increase opportunities.”
Brad M. Wegman, vice president of L.J. Hart & Company, prepared the refunding proposal and explained how it can fit into the long-range plans of the district.
He noted the three significant factors making the Series 2023 refunding attractive were the recently improved interest rates, the fact the Series 2018 Bonds are subject to prepayment at no penalty on May 4, 2023, 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 a “AA+” rating from S&P Global on the refunding bonds.
He complimented Keilholz for his prompt and thorough preparations to supply the data necessary for the official statement, as well as the board for their foresight in making the Series 2018 Bonds callable in five years. The Series 2023 Refunding Bonds will also have a five year call feature of March 1, 2028 at no penalty.
The Series 2023 Refunding Bonds were made available to local financial institutions as part of the marketing procedure.
The Exchange Bank of Northeast Missouri has agreed to purchase $250,000 of the bonds. The closing for the Series 2023 Refunding Bond issue occurred on May 3.
Keilholz said he was pleased efforts were made to accommodate local investors.
“It is great that our marketing procedures facilitated this local involvement while still receiving attractive interest rates and we appreciate the support of the Exchange Bank of Northeast Missouri,” Keilholz said.
Several board members commended Keilholz and L.J. Hart & Company for developing the attractive refunding plan.
“We are glad to be able to save $59,155 of our taxpayers’ money by taking advantage of the recently improved bond market conditions,” saied Stewart.
In other business, the board approved the staff Wellness Plan and Incentive.
Staff participating and completing the wellness activities for the year receive $50 or an extra day of paid leave.
They also accepted the bid of BK Concrete to finish the last phase of the parking lot. Construction will begin this summer after school is out.