By MICHAEL BOYD Jr.
Ste. Genevieve Herald
Authorization to issue half of the $20 million in bonds for Prop SG has been approved by the Ste. Genevieve R-II School Board.
During the Aug. 30 meeting, the board approved the resolutions by L.J. Hart and Company authorizing the issuance and sale of $10 million Series 2022 General Obligation Bonds.
Ste.. Genevieve County residents had approved Prop SG with 71% of the vote during the April 5 election.
The bonds were approved for the purpose of addressing facility needs encompassed by Prop SG. L.J. Hart & Company presented the resolution and provided a detailed explanation to the board.
The board of education approved the negotiated sale of the bonds in order to capture current market conditions, meaning that local banks received an opportunity to purchase the bonds, and because the proposed interest rates were fair based upon current conditions in the municipal-bond market.
Three banks from Ste. Genevieve County committed to $1.5 million of the bonds: Bank of Bloomsdale committed to $1.5 million; MRV Bank purchased $1,050,000; and First State Community Bank acquired $500,000.
“The Board and District administration were excited to learn that local financial institutions took advantage of the opportunity to invest,” R-II said in the board minutes press release.
The bonds are scheduled to mature on March 1, 2035 through March 1, 2042, with reoffered yields ranging from 3.00% to 3.20%.
The district is also selling the bonds at a premium by utilizing a 5.00% interest rate with the investors receiving the reoffered yields to the March 1, 2027 call date.
This structure produces additional funds for the projects with the reoffering premium in the amount of $770,046.
The interest income from the bonds is exempt from federal and state of Missouri income taxes.
After all related fees and expenses – totaling approximately $130,000 – have been subtracted from the premium, approximately $10,639,846 is expected to be available to the district by Sept. 13, 2022.
These bonds carry a “AA+” rating from S&P Global due to the district’s participation in the State of Missouri Direct Deposit Program.
MORE PROP SG
Ste. Genevieve Deputy Superintendent Dr. Paul Taylor presented an update on Prop SG, in which the district administration recently met KRJ Architects and Brockmiller Construction, Inc. to review current plans and progress.
The district administration provided suggestions for updated drawings at that time, and met with the building administration, as well as Ste. Genevieve R-II Athletic Director Dr. Jeff Nix and coaches to attain their input before the next meeting with the architects and the Construction Manager At-Risk.
Taylor stated that he anticipates a contract with Brockmiller by the end of the last week.