Taxpayers and the Board of Education of Saline County Schools USD 306 (Southeast of Saline) got good news on Monday, June 11th. The District sold the general obligation bonds approved at the April election at a rate significantly below the pre-election estimate.
USD 306 received 9 bids for purchase of the $5.84 million in bonds to finance capital improvements to District schools. The winning bid was provided by Commerce Bank of Kansas City at a True Interest Cost of 2.709%. Country Club Bank of Overland Park provided the second best bid at 2.7412%. All 9 bidders were under 3%.
The original estimate for the bond financing was at 3.50% for the 12-year bonds.
With the lower finance cost, the estimated mill rate to retire the bonds is 6.9 mills as compared to the original estimate of 7.63 mills.
The District’s financial advisor for the bond election and sale is the Wichita office of George K. Baum & Company. Bret Shogren, representing Baum stated, “ We are extremely pleased with the result of the bond sale and resultant interest rate. The lower bid represents reduced debt service costs on the retirement of the bonds by more than $350,000 over the original estimate. George K. Baum is proud to be the financial advisor to Southeast of Saline USD 306 for this transaction.”
The District applied to S & P Global for a credit rating on the bonds and received a rating of AA- .
With Board approval of the bid and adoption of the bond issuance resolution, Baum will work with bond counsel to order the printing of the bonds, the filing of a transcript with the Kansas Attorney General, and a closing of the transaction is scheduled for June 27th.