Cassville R-4 School District approves bond sales
Bonds to mature on March 1, 2025, through March 1, 2029
The Cassville R-4 School District is hoping for plenty of local support, as it has approved the sale of $4 million in general obligation bonds.
According to Kelly E. Liermann, senior analyst at L.J. Hart & Company, the district's municipal bond underwriter, the serial bonds are scheduled to mature on March 1, 2025, through March 1, 2029 with reoffered yields ranging from 2.70 percent to 3.20 percent.
"The district has already begun work on many of the commitments made to the parents, students, teachers and patrons of the district," said Becky Henningson, school board member. "Priorities were made and our goals to complete several projects before the start of school is important to us.
"Our efforts to provide excellent facilities and opportunities for our community is our responsibility we take seriously. We have a lot of work to be accomplished and are evaluating all our needs to ensure success."
The $4 million in bonds were approved by 64 percent of voters on April 8. They will fund maintenance, repairs, upgrades, renovations, FEMA additions and improvements including upgrading heating, ventilation and air conditioning and electrical systems at the primary, middle, and high schools; the installation of technology infrastructure and equipment
enhancements; the completion of lighting, seating, and flooring improvements to the middle and high school gymnasiums; the repair of or replacing roofs at the primary and middle schools; the resurfacing of selected parking lots and drives; the renovation of the old middle school building for future use; and to the extent funds are available, prepayment of FEMA lease financings.
The Cassville Board of Education selected the negotiated sale of the bonds in order to capture current market conditions, hoping to give local individual investors and banks an opportunity to purchase the bonds. Officials also said the proposed interest rates will be fair based upon current conditions in the municipal bond market.
Richard Asbill, superintendent of Cassville Schools, said the district will compare proposed interest rates with the national bond indexes and other comparable Missouri issues with a similar rating quality sold at negotiated sales to be certain that rates for the District's bonds are consistent with those being paid by other issuers.
The bonds carry a "AA+" rating from Standard and 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.
The bonds do contain optional redemption (call) provisions on March 1, 2019, at no penalty that will facilitate the reduction of future interest expense in the event of prepayment or a future refunding to lower rates if market conditions make it economically feasible.
The financing proceeds are expected to be available to the district by July 15, 2014, and will be reinvested to earn additional interest for use in the completion of the projects.
Individuals interested in buying some of the bonds may contact L.J. Hart and Company at 800-264-4477 or their local Edward Jones and Company account representative.
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.