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Tuesday, May 3, 2016

R-2 board picks refinancing plan

Friday, September 16, 2011

The Purdy R-2 Board of Education has selected L.J. Hart and Company to refinance $1.6 million in bonds remaining from the $2.1 million in bonds that paid for the last school construction project.

When the board asked both Hart and Crews and Associates for identical proposals, the differences between the savings plans was minimal.

"The board and I felt either company could have handled this and got within a few dollars of the same thing," said Jerry Lingo, school superintendent. "The board went with L.J. Hart because they have worked with Hart for a number of years."

In a change from the initial presentations made to the board in August, board members asked both firms to make a proposal based on no anticipated annual growth in tax revenue for the district.

Problems arose from the last bond issue when Hart's projections of annual growth at 2.5 percent did not occur. The district had to pay $40,000 from its general fund last year to meet its bond obligation, in addition to interest from the bonds.

Lingo said the proposal selected by the board would lock in an interest rate of 2.46 percent over the next 10 years. The deal would save the district $143,913 over the terms of the old bond issue. In case interest rates flutuate further, board members asked to have the bonds available for re-purchase after five years.

The board will finalize the bond package at its next meeting on Sept. 19.

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