The Warren County R-III School Board of Education approved an agreement with L.J. Hart and Company to spend no more than $10 million this year as a part of Prop R3.
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The Warren County R-III School Board of Education approved an agreement with L.J. Hart and Company to spend no more than $10 million this calendar year as part of Prop R3 approved by voters back in April. Next year, the board cannot exceed a $22 million limit of the bond funds.
Prop R3 was a voter-approved $45 million no-tax increase bond measure to build a new elementary school on the northside of Warrenton. The new facility will help the district prepare for anticipated growth, according to school officials.
Last Thursday’s unanimous action by the board should allow the district to receive more favorable financing rates as it moves forward on the project.
At the meeting, a representative from L.J. Hart and Company explained to the board that it is beneficial to have an underlying rating, which should help them receive favorable rates. Essentially, it is the district’s credit score, officials said.
The time span for the principal payments will be from 2027 to 2038. The proposed schedule was $9.5 million spread out through the years to help increase bank qualification and lower interest rates, which will lead to better rates on loans.
The principal payments drop up and down throughout the years, with a payment of $1 million due for 2027 and $160,000 due for 2028. This is designed to help blend in with the district’s existing debt payments.
The rate will go for 4% the first eight years and 5% for the last four years. Officials are anticipating the yield to the investors will be less, ranging from 2.99% to 3.62%, but market conditions could affect the actual rates.
The next step for the board will be discussing bids for the new elementary school at their next meeting on Oct. 10.
