R-5 board puts capital improvement bonds on ballot

Thursday, January 5, 2012

If Nevada R-5 voters agree, the school district plans to build a new performing arts center, a new multi-purpose building, make upgrades to the district's technology and to make repairs to Wynn Gymnasium and the high school's tennis courts.

During a special meeting Wednesday morning the Nevada R-5 Board of Education, which has been discussing six possible capital improvement projects for several months, voted 7-0 to set April 3 as the date for a special election to ask R-5 patrons to approve a $5.9 million bond issue to finance these projects and to hire LJ Hart & Company as the bond underwriter for the project. The issue will require a 4/7 majority to pass.

The board also voted 7-0 to adopt a resolution of intent to use about $800,000 of the bond financing to reimburse the district for upgrades to the district's technology.

Nevada R-5 superintendent David Stephens said that the district is going to do the upgrades to the district's 12-year old technology with or with out the bond issue.

Larry Hart, LJ Hart & Company, told the board Wednesday that while this bond issue will not involve an increase of the district's levy, it will renew the existing levy.

"The 13.52-cent debt service levy is adequate for payment of the new bonds," Hart said.

He told the board that the current interest rates are lower than when they first started working this project and because of the economy he does not expect the rates to go up between now and the April 3 election or when the bonds are sold in June.

"The probable rate for 20 year tax exempt issue is 2.79 percent," he said.

"I've been in this profession for 35 years and this is lower than it's been in that time frame," he said.

Hart told the board that even if the interest rates were to go up by .5 percent, the district's current levy would still work for the bonds.

He said that of the $5,975,000 in bonds will produce a little more than $5.9 million for the projects. The other $75,000 will go to Hart for marketing the bonds and will be shared with any other firms that help to market the bonds.

"This project has broad appeal," Hart said, adding that because of that he is reluctant to recommend that the district take a low-key approach to the election.

He said that they recommend the district set up a steering committee to work on the issue.

The R-5 district can only provide information on the bond issue and urge people to vote, it cannot advocate for its passage or tell people to vote for the issue, Stephens told the board.

The steering committee, which is not a part of the school district, can advocate for the passage of the bond issue.

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