The Warren County R-III School District recently issued Series 2026 general issue bonds to help pay for its capital projects.

At the March school board meeting, Neil Branham from LJ Hart and Co., a subsidiary of Commerce Bank, outlined the parameters of a resolution to issue $10 million in bonds, as part of a bond issue approved by taxpayers in the April 2024 special election.

“We’ve been the district’s municipal bond creditor since 1995,” Branham said. “In that time, we’ve done about $170 million in bonds, so this is just an add-on to that. This is the third installment of the $45 million (bond issue) passed in 2024. The first one was $9.5 million and then $20 million last year. There is still $5.5 million outstanding to issue next year, or really when that capital accommodates it. This (issuance) will have a AA-plus rating.”

The purpose of the bonds is for providing funds for site development, construction, equipping, and furnishing of the new Daniel Boone Elementary School and other building additions; to upgrade heating, ventilation and air conditioning (HVAC) systems; to repair or replace roofing; to acquire land and buildings; to prepay capital facility lease obligations issued to finance construction and capital projects; to the extent funds are available, complete other renovations, repairs and improvements to the existing facilities of the district.

The bonds, which are structured to blend with existing bond payments and future issuances, will have a 20-year financing from the date of issuance.

Branham also provided the board with an update on the municipal bond market.

He said that world events have had an effect different from usual, and it would be wise for the board to wait a bit before putting the bonds on the market.

“It’s crazy right now,” Branham said. “Usually, when a world event happens, like is happening in the Middle East, interest rates go down. That’s not happening right now. They have gone up. The volatility is on the short end, not necessarily on the long end. I don’t think we’ll be putting these bonds on the market right now because of the volatility.”

R-III Superintendent Dr. Gregg Klinginsmith added to Branham’s thoughts on the volatility of the market by saying that, financially, the district is in a good financial position.

“With the cash flow we have, we don’t have to move on this right now,” Klinginsmith said. “We’ve got a little bit of time.”

The board voted unanimously to issue the bonds at such time as the market becomes less volatile.