Scott County District approves sale of $6.5M in bonds

BENTON, Mo. — The Scott County "Kelly" School Board at its regular meeting May 10 approved the sale of a $6.5 million general obligation bond issue to its municipal bond underwriter, L.J. Hart & Co. of St. Louis.

"We appreciate the strong vote of confidence we received from local patrons at the election and want to lock in interest rates that are still favorable in a rising rate environment," said David Brashear, president of the School Board.

The new money general obligation bonds were approved by about 76.42% of voters in the April 5 election. The proceeds will mainly be used to install a secure vestibule, complete renovations at the middle school, to replace the high school gym bleachers and to install field lighting for the baseball/softball fields.

The bond marketing process provided the first opportunity to invest to local financial institutions, and according to L.J. Hart & Co., Bank of Advance purchased $1.5 million, Alliance Bank acquired $350,000, and First Midwest Bank of Dexter bought $1.325 million of the bonds.

The information shared by Thomas J. Pisarkiewicz, president of L.J. Hart & Co., indicated the bonds are scheduled to mature March 1, 2026, through March 1, 2042, with re-offered yields ranging from 2.60% to 3.25%. The district is selling the bonds with an interest rate of 4.00% to the March 1, 2027, call date, which produces additional funds as a re-offering premium for the projects in the amount of $241,502.00. The interest income from the bonds is exempt from federal and state of Missouri income taxes and the bonds were available in $5,000 denominations. These bonds carry a "AA+" rating from S&P Global because of the district's participation in the State of Missouri Direct Deposit Program coordinated through the Missouri Health and Educational Facilities Authority.

The financing proceeds are expected to be available to the district by May 26 and will be reinvested by the district to earn additional interest for use in the completion of the projects.