VIENNA — The Maries R-1 Board of Education discussed the passage of Proposition K.I.D.S. with a representative from L.J. Hart and Company at their April 15 meeting.
L.J. Hart’s …
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VIENNA — The Maries R-1 Board of Education discussed the passage of Proposition K.I.D.S. with a representative from L.J. Hart and Company at their April 15 meeting.
L.J. Hart’s President and CFO Tom Pisarkiewicz joined the board to provide the post-election update. He said the 76 percent voter approval of the bond was “fantastic,” especially because this year’s approval rate for the firm’s 67 bond issues across the state was 83 percent compared to nearly 100 percent most years.
Pisarkiewicz’s main purpose for attending the meeting was to establish a final terms committee consisting of the superintendent, the board president and L.J. Hart. Once the firm finds investors, the committee can lock in the financing if it meets certain conditions.
L.J. Hart has issued more than $12 million in debt to Maries R-1 dating back to 1993. In planning the bond, the firm researched the annual growth of the district’s assessed valuation over the last five years. The average rate over that time period has been 4.28 percent. Pisarkiewicz said the firm has been conservative in its estimation of future growth and only planned for an annual increase in assessed valuation of 1.5 percent. If the growth rate is higher, then the district can pay off the bond faster.
Pisarkiewicz gave updates on previous bonds for which the district still owes money. The district has $365,000 remaining on its 2016 bond. The repayment plan ends in 2026. The district owes $2 million on its 2020 bond. Pisarkiewicz said he would return later in the year to discuss the possibility of refinancing when that bond becomes callable next year.
Maries R-1 already has enough money in reserve to make next year’s debt payments. It may carry a reserve that slightly exceeds the value of a year’s payments. The district remains below its $7,914,255 bonding capacity, so the district can issue additional debt if necessary.
The sample repayment plan Pisarkiewicz provided would last for 20 years though principal payments would not begin until 2035 because otherwise the bond would have included a tax increase.
The board voted to approve the post-election bond resolution.
