School board bonds draw favorable bids

The sale last week of the third installment of a $40.3 million bond issue approved by parish voters in 2013 drew one of the lowest interest rates in recent history.
Bonding attorney Grant Schleuter, who advises the board on such matters, called the winning bid of 2.86 percent from Bank of America/Merrill Lynch an “incredibly low rate – one of the lowest we’ve seen in a long, long time,” adding that he was “extremely happy” with the results.
Last week’s sale of $11,675,000 in 20-year bonds follows earlier sales of $5 million in July 2013 and $12 million in January 2014.
The interest rates on those bonds were 3.64 percent and 3.45 percent, respectively.
Schleuter attributed the low interest rate offered to a combination of market conditions and the financial strength of the parish school district.
The school board bonds carried an A+ rating.
The money should be in the board’s hands by mid-March.
The board is still authorized to market another $11,675,000 in bonds but has not yet set a date for that sale.
The proceeds from the bonds are being used for a wide ranging number of improvements to school facilities throughout the parish.
In another finance-related matter considered during the board’s Feb. 4 regular meeting, members approved the purchase of 10 regular buses and two special ed buses at a cost of $451,000. The new buses – Bluebird chassis powered by Cummings diesel engines – should be delivered by early March.
Board members also asked its staff to continue looking into the possibility of overhauling nine buses purchased in 2007 that have experienced major mechanical problems.
The district operates some 80 buses, including 11 special ed units.