The Park Rapids School Board granted the general school building bond sale on Tuesday.
Jodie Zesbaugh, Senior City Councilor at Ehlers Inc., announced the results of the sale of the 2022A series of bonds with a total principal of $30 million – phase 1 of a $51.65 million bond issue that voters approved on November 2, 2021.
Of seven bids, the lowest bidder was Baird of Red Bank, NJ with an interest rate of 2.2382%. That was well below Ehlers’ 2.42 percent percent projected at the December 20 school board meeting and the 2.5 percent estimate used in district campaign materials for the election of connection.
Zesbaugh credited Superintendent Lance Bagstad and Commercial Director Kent Fritze for their strong performance in the district’s bond rating interview with Standard and Poor’s Global Ratings. They expressed their relief and joy at the unexpected results of the sale, including the number of bids as well as Baird’s low bid.
Other bids came from Piper Sandler & Co., UBS Financial Services, RBC Capital Market, Wells Fargo Bank, JP Morgan Securities and Bank of America-Merrill Lynch, which submitted the highest bid at 2.4575% .
Baird’s offer included a re-offer premium of more than $1.4 million in addition to the principal of the bond of $30 million. Taking into account investment income, discount auctions and legal/tax costs, this gives a net amount of $31,087,317 deposited in the building fund.
Zesbaugh said these bounty dollars can be used to reduce project costs that the district had planned to fund from other tax-impacting sources, such as long-term facility maintenance (LTFM) or capital obligations.
School board member Dennis Dodge moved a motion to award the sale to Baird, and the motion passed 5-0, absentee board member Dana Kocka.
In two separate petitions, the school board also named TD Ameritrade as the official custodian to invest school district funds through Ehlers and declared the district’s intention to reimburse project expenses from bond proceeds. .
“If you end up issuing bonds under the LTFM program or the capital program, and you incur some of those costs before those bonds close, that allows you to repay yourself from those bond products,” explained Zesbaugh. .
In BriefIn matters of consent and general matters, the school board:
- Heard High School principal Jeff Johnson announced that his school would begin trying to sell the house being built by students in the building trades program earlier this year. He said the idea is to give buyers time to plan the house move over the summer.
- Heard Johnson reports that teachers made productive use of parent-teacher conference time to contact students’ families by phone and email, while less than 25% of parents attended in person.
- Heard College Principal Shawn Andress reports that Upward Bound staff at Bemidji State University will begin meeting with Century eighth-graders on January 25, as part of a program that, according to Andress, has led many students to enter and graduate from college over the past 15 years.
- Heard Andress reports that the region’s first unified Special Olympics teams are forming for basketball and bowling.
- Jill Dickinson, Director of Community Education Heard, reports that 17 students have signed up for a new coding club.
- Teacher lane changes approved for Brianna Anderson, Rachael Andersen, Meghan Eidsmoe, Stephen Funk, Shane Graham, Danielle Perry, Patrick Richard, Alexa Skajewski and Autumn Sturtz.
- Acknowledged an enrollment review showing K-12 enrollment fell by a total of nine students, from 1,603 to 1,594 between Dec. 16 and Jan. 11. Meanwhile, the district’s total enrollment (including preschool, virtual academy and alternative learning center students) decreased by 17 students. from 1757 to 1740.
- Approved an annual resolution asking the administration to recommend curriculum, program, and staffing adjustments for 2022-23.
- Recognized donations totaling $7,450, including $1,200 in high school Class of 1963 scholarships. Additionally, the Wolf Lake Wolf Pack Baseball Club donated $2,500 to second- and third-year staff from Century Elementary, $1,000 each to the high school band and young boys and girls. basketball programs and $500 to the Century Middle School student council.
- Approved a quarterly report on student activity accounts, showing revenues totaling $44,874 and expenses totaling $36,334.
- Approved payments submitted for January totaling $1,290,081.
The next school board meeting is scheduled for Monday, February 7 at 6 p.m. at the Frank White Education Center.