The Coffee County Board of Education approved an initializing contract in pursuance of bonds to fund multiple capital projects at its regularly scheduled meeting on Feb. 6.
The board approved the contract with INTL FCStone Financial, Inc. to submit the system’s form for approval of the issuance of bonds to the state, go to market on the bonds to lock in an interest, close on the bonds and issue the bonds equaling $13 million.
INTL FCStone Municipal Investment Banker David Langham said that the system received a AA- credit rating, which was going to help their interest rates once the company went to market to lock in an interest rate for the bonds. He said it’s very uncommon for new borrowers to the long-term institutional market to receive that rating, and that the rating is equal to a personal credit score of about 775-800.
“This does not happen,” Langham said. “This is a very rare instance to be in the position you’re in and receive that rating. So (it’s) a really wonderful accomplishment.”
Langham originally presented numbers at a Nov. 7 work session meeting, which would put the system’s total debt repayment each year at around $915,000-$935,000. Langham at this meeting said with the changes to interest rates in the market, the system’s credit rating and other factors, that the system’s repayment each year could be as low as around $900,000.
Langham said that the tentative schedule is to go to market, close on the bonds and issue them to the system by the end of February.
The bonds will be used to fund the 12 new classrooms at New Brockton Elementary, the stadium improvements at New Brockton High School and Zion Chapel School, a new gym at Zion Chapel and six new classrooms at New Brockton High School.
The payments on these bonds would last until 2045, according to Langham.
In other business, Superintendent Kevin Killingsworth asked the board for permission to bid out the construction of six new classrooms at New Brockton High School.
The board approved the bidding out of the classrooms.
The new classrooms would also serve as storm shelters for the school.
The next meeting of the Coffee County Board of Education will be March 5 at 5:30 p.m. at the central office in Elba. The meeting is open to the public.