Archive for Wednesday, December 24, 2008

USD 491 gets funding

December 24, 2008

The Eudora USD 491 Board of Education learned last Thursday that the district had secured temporary financing to pay for bond projects.

District bond council Steve Shogren of the investment banking firm George K. Baum informed the board that it would $12 million of temporary bond notes had been placed. The district needed the funds to continue work on construction projects throughout the district.

Although only two bidders agreed to purchase a total of $6 million in notes, Shogren’s firm of George K. Baum agreed to cover the remaining $6 million.

At the district’s monthly board meeting one week earlier, the board learned there were no bidders for the districts attempted $11.25 million bond sale. Although as many as four institutions showed interest, an obscure state statute that interest on bonds can’t be more than 3 percent above the 10-year U.S. treasury bill rate scared off bidders.

As a result, the district was forced to issue temporary note with the hope the market will have improved enough in the spring for the district to sell bonds.

Superintendent Don Grosdidier said the news would allow him and the board to breathe a little easier during the coming months. He also said George K. Baum would begin to lobby the state, in light of the failing the economy, to make changes to the troublesome state statute.

Already under construction is the new elementary school, which will cost about $27 million and house students in grades first through fifth, and additions to the middle school. They are set to open in August 2009.

The district has not yet broken ground for the planned addition at Eudora High School, a new technical center or a new district stadium, which all are set to open in August 2010. The high school and the technical center projects will go out to bid in February, while the stadium will go out to bid in fall 2009.

All of the projects are part of the $45 million bond issue passed by voters in November 2007.

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