Mt. Vernon Register-News

October 24, 2012

D-80 approves bond for construction

The bond is $3.5M and is for the Casey Middle School expansion and related projects

By ROSIE GITHINJI
rosie.githinji@register-news.com

MT. VERNON — — The District 80 board members approved issuing a $3.5 million bond for construction of the Zadok Casey Middle School expansion and related projects.

Anne Noble, of Stifel Nicolaus, presented the board with the offers for the purchase of the bond. The money will be received by the district in two weeks, Noble said.

Noble said bids were sent out to 30 different banks and the large number from which to choose helped with finding the best options for the district.

Two banks won the best bids for the bond - Peoples National Bank and Capital One. Peoples National Bank was a partial bid and will last for three years. Capital One will hold the majority of the bid. Noble said using two banks helped lower the cost for the district.

District 80 Superintendent Mike Green said the bid process has taken about three months of work.

“When we started this process, we thought we would end up with 3 percent, so 2.8 percent is good,” Green said of the interest rates, adding the district used $2.5 million of its own money to start the expansion project at the middle school. “We are just excited to get this part of it done.”

The district will be paying between $289,000 and $292,000 in annual payments. The payments will be split into two payments each year, one on June 1 and one on Dec. 1. The payments will last through to 2027.

Noble said she was pleased with the bid purchases because the bonds were sold to the buyers directly, which saved the district money.

In other business the board: