DISTRICT FINANCES

Board Approves Resolution Authorizing Issuance & Sale of $10 Million Series 2023 General Obligation Bonds

March 2023 — At the March 9, 2023 Board of Education's Regular Meeting, the Board approved the resolution authorizing the issuance and sale of $10,000,000 Series 2023 General Obligation Bonds with L.J. Hart & Company. This is the second installment of the $20,000,000 approved at the April 5, 2022, election by about 71% of the voters. These bonds were approved for the purpose of addressing facility needs encompassed by Prop SG. Vice President Courtney Wegman, Senior Analyst Erin McManus, and Chairman and Vice President Jeff Lindsey of L.J. Hart & Company presented the resolution and provided a detailed explanation to the Board.

The Board of Education approved the negotiated sale of the bonds in order to capture current market conditions, to be certain that local banks received an opportunity to purchase the bonds, and because the proposed interest rates were fair based upon current conditions in the municipal bond market.

The bonds are scheduled to mature on March 1, 2024 through March 1, 2031, with reoffered yields ranging from 3.35% to 3.40%. The district is also selling the bonds at a premium by utilizing a 5.00% interest rate with the investors receiving the reoffered yields to the March 1, 2028 call date. This structure produces additional funds for the projects with the reoffering premium in the amount of $551,430. The interest income from the bonds is exempt from federal and state of Missouri income taxes.

After all related fees and expenses (totalling about $130,200) have been subtracted from the premium, approximately $10,421,230 is expected to be available to the district by March 22, 2023, and these funds will be reinvested by the District to earn additional interest for use in the completion of the projects.

These bonds carry a “AA+” rating from S&P Global due to the district’s participation in the State of Missouri Direct Deposit Program coordinated through the Missouri Health and Educational Facilities Authority. The bonds do contain optional redemption (call) provisions on March 1, 2028, at no penalty that will facilitate the reduction of future interest expense in the event of prepayment or a future refunding to lower rates if market conditions make it economically feasible.

Board Approves Resolution Authorizing Issuance & Sale of $10 Million Series 2022 General Obligation Bonds

August 2022 — At the August 29, 2022 Board of Education's Regular Meeting, the Board approved the resolution authorizing the issuance and sale of $10,000,000 Series 2022 General Obligation Bonds with L.J. Hart & Company. This is the first installment of the $20,000,000 approved at the April 5, 2022, election by about 71% of the voters. These bonds were approved for the purpose of addressing facility needs encompassed by Prop SG. Vice President Courtney Wegman, Senior Analyst Erin McManus, and Chairman and CEO Larry Hart of L.J. Hart & Company presented the resolution and provided a detailed explanation to the Board.

The Board of Education approved the negotiated sale of the bonds in order to capture current market conditions, to be certain that local banks received an opportunity to purchase the bonds, and because the proposed interest rates were fair based upon current conditions in the municipal bond market. The Board and district administration were excited to learn that local financial institutions took advantage of the opportunity to invest. MRV Bank purchased $1,050,000, the First State Community Bank acquired $500,000, and the Bank of Bloomsdale committed to $1,500,000 of the bonds.

The bonds are scheduled to mature on March 1, 2035 through March 1, 2042, with reoffered yields ranging from 3.00% to 3.20%. The district is also selling the bonds at a premium by utilizing a 5.00% interest rate with the investors receiving the reoffered yields to the March 1, 2027 call date. This structure produces additional funds for the projects with the reoffering premium in the amount of $770,046. The interest income from the bonds is exempt from federal and state of Missouri income taxes.

After all related fees and expenses (totalling approximately $130,000) have been subtracted from the premium, approximately $10,639,846 is expected to be available to the district by Sept. 13, 2022.

These bonds carry a “AA+” rating from S&P Global due to the district’s participation in the State of Missouri Direct Deposit Program.

At SG R-II, we continue to maintain a strong commitment to fiscal responsibility by striving to utilize our funding sources in ways that make the greatest impact and carefully planning ahead with our taxpayers' benefit in mind.

~ This webpage will be updated as more information becomes available! ~

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Paid for by the Ste. Genevieve County R-II School District, Superintendent Dr. Paul Taylor