PLATTSMOUTH – Plattsmouth Board of Education members authorized the issuance of more than $5 million in bonds on Monday night to pay for district construction projects.
Board members approved a resolution calling for the issuance of bonds in the amount of $5,575,000. Financial advisor Bruce Lefler appeared before the board and explained the process before the vote. He said issuing the bonds now would provide the necessary resources to finish projects such as the new vocational technology center and heating and ventilation improvements.
“This is the remaining piece of what was issued before in 2019,” Lefler said. “Last year we issued $9,480,000 in bonds that will be maturing in 2039.”
Voters authorized a bond issue in May 2019 for a total amount of $15,055,364. Local residents approved the school district’s request to use bond money to fund more than 30 projects across town. These are taking place at the high school, middle school, elementary school and early childhood center.
District officials decided to split the issuance of bonds into two separate actions for financial reasons. Lefler advised them that $9.48 million was a proper amount to complete many important projects during the final half of 2019 and first half of 2020.
The district will be able to access the remaining $5.575 million once investors buy the bonds later this fall. Lefler said that will likely take place by the third week of October.
Lefler said he was pleased about the interest rates that will be attached to the final set of bonds. He told board members that he had been anticipating an interest rate of 3.50 percent when the special election took place in May 2019. The district will pay an interest rate of approximately 2.0 percent instead.
“The interest rates are much lower than the estimates we made at election time,” Lefler said.
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