The Warren County R-III Board of Education has unanimously approved a resolution to issue up to an additional $20 million in general obligation bonds.
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The Warren County R-III Board of Education has unanimously approved a resolution to issue up to an additional $20 million in general obligation bonds as part of Proposition R3 — a $45-million no-tax increase bond measure that voters passed in April 2024 to fund the construction of a new elementary school.
Last year, the board previously approved issuing no more than $10 million in bonds, of which $9.5 million has already been sold. With this latest approval, the district will have access to up to $20 million more, staying within the overall $45-million cap. The remainder of the funds is expected to be issued next year.
The district is intentionally accessing the bond funds in stages to reduce long-term interest costs. Rather than borrowing the full amount upfront, the district is only issuing funds as they become necessary, allowing it to better manage debt, officials said.
Thomas Pisarkiewicz, president of L. J. Hart and Company, did explain to the board how volatile the current market is and it is not in their favor to sell bonds at this moment.
On April 4, rates were just above 2.25%, but by April 9, they had spiked to over 3.25%. A slight drop was observed on April 10 and Pisarkiewicz is hopeful it will continue in that direction.
Because of these rapid changes, the board approved a measure allowing L.J. Hart, Klinginsmith and Board President Jeff Schneider to monitor the market closely and act quickly when conditions are favorable and investors are in place.
Essentially, the district is getting a loan but they will not start borrowing from it and paying interest until it is needed.
Warren County R-III bonds did receive an A+ and AA+ credit ratings, which does make the bonds more attractive to investors.
Bond payments will continue through 2044, with the largest payment of $3.575 million scheduled for that year. The average projected yield is 4.744%.
There is no expiration when the bonds need to be sold. However, as the project moves along, it will need to be approved as money dwindles.
The district officially broke ground on the new elementary school on Nov. 14. The building will be located north of Interstate 70 in Warrenton along E. Ash Road and Highway 47, beside the city’s water tower.
The school is expected to open for the 2027-28 school year.
