Archive for Sunday, July 22, 1990

COST OF BOND ISSUE FOR SCHOOL DISTRICT FIGURED AT $94,000

July 22, 1990

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The Lawrence school district's proposal for a $31.8 million bond issue for building a second high school and upgrading other district facilities also covers the cost of issuing the bonds.

School officials have estimated that cost to be $94,000.

Rodger Edgar of George K. Baum and Co., the financial adviser for the school district, said the estimate is rather rough because several components of issuing bonds don't involved fixed prices.

For example, he said, the district probably will take bids for printing the bonds and other related materials, so the final cost of that undertaking could run from $5,000 to $10,000.

The rest of the $94,000 will pay for the services of George K. Baum, the district's legal counsel for the bond issue, the rating of the bonds, state bonding fees and the state treasurer's registering of the bonds.

HOWEVER, before any money is spent, the bond issue must first be passed by district voters in November. The proposed bond issue includes $23.5 million for building a second high school, $7.06 million for renovations to Lawrence High School, $800,000 for additions to Wakarusa Valley and Sunset Hill schools, $275,000 for two new baseball fields on the district's property at Holcom Park and the $94,000 for issuing the bonds.

Edgar said that if the bond issue passes, one of the next steps will be to develop a prospectus of the school district and send it to potential purchasers of the bonds.

"The school district has a very good reputation, and it's well deserved," Edgar said. "Most school districts in Kansas are considered to be financially stable, and USD 497 is definitely in that category.

"THE LAWRENCE area in general and the area that the school district serves has been growing and has a strong local economy. Hopefully, that will bring more bids and at lower interest rates than they might otherwise be."

Edgar said the bond issue probably could be closed in 21 to 30 days after the district starts to accept bids on the bonds. Shortly thereafter, funds could be delivered to the school district. The district then would simply make semi-annual payments on the bonds and accumulated interested according to established repayment provisions.

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