Savings realized on bond sale
St. Mary Parish School Board members Roland Verret, Anthony Streva and Bill McCarty consider line items during Tuesday’s budget workshop. The budget is scheduled to be formally adopted at the August board meeting.
(The Daily Review Photo by Crystal Thielepape)
The St. Mary Parish School Board on Tuesday sold the bonds to fund construction of a replacement junior high school in Patterson at a savings of $4 million to taxpayers over the life of the loan.
Voters in October approved a 15-mill property tax to support $21 million in bonds paid over 20 years. At that time, the millage anticipated a 5 percent interest rate. When bids came in, the low bidder, Raymond James Financial, won with a 3.59 percent interest rate.
Bonding attorney Jerry Osborne said that over the 20-year life of the loan, the lower interest rate means a $4 million savings to residents between Calumet Cut and Southwest Boulevard in Bayou Vista who are paying the tax.
The projected 5 percent interest paid on the loan would have amounted to $12.44 million over the life of the loan, Osborne said.
The money will be delivered July 29, Osborne said.
At the June school board meeting, members gave permission to advertise for bids for the addition of a new multi-purpose building at Hattie Watts Elementary, also being paid with the bond.
Plans for the smaller Hattie Watts project are being drawn by architect Jim Firmin, who also will be in charge of the plans for the new junior high.
Superintendent Donald Aguillard said this morning bids will be received Aug. 7, and the winning bid announced at the August board meeting for that project.