The Stephenville ISD board of trustees met for a called session on Monday. The board heard reports from Deborah Hummel, assistant superintendent of business and finance, in regard to the latest review and rating determination by Standards and Poor’s. This is a requirement in the preparation for the sale of the district bonds for the construction projects at Central and Chamberlin elementary schools approved in May. The district received AAA and A+ ratings, which are respectable assessments. These ratings assisted the district in bond sales that took place on July 30.
Bond financial advisor Josh McLaughlin of BOSC, Inc. addressed the board, stating the district had selected an excellent bond sale date. The bond market was currently at 3.61%, and the lowest mark in the last 10 years was 3.60%. He then detailed the two bond issues to be funded by the district. The district offered a competitive sale of the $6,575,000 of Unlimited Tax Qualified School Construction Bonds (QSCB). These bonds were sold at an interest rate of 3.65%, all of which will be reimbursed by the federal government, resulting in a net interest rate of 0%. The second sale of $17,425,000 Unlimited Tax School Building Bonds were sold with a true interest rate of 3.48%. The board approved these complete sales based on McLaughlin’s report.
There was good news for property owners in regard to taxes assessed for educational support. The board completed another budget review and approved the proposed tax rate for 2012 at $1.04 for Maintenance and Operations and $0.154 for Interest Sinking for a total of $1.1940. That is 1.8 cents lower than originally projected at the time the bond was approved, which will save the average taxpayer about $46 per year.