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Deer Creek board accepts $25.865 million taxable GO bond bid from RW Baird at 4.162%
Summary
The Deer Creek School Board voted 5-0 to accept a low bid from RW Baird for $25,865,000 in taxable general obligation combined-purpose bonds, approving related authorizing steps to register the issue with state and federal entities and noting higher-than-forecast property valuations that keep the millage rate in line with projections.
The Deer Creek School Board voted 5-0 to accept a low bid from RW Baird for $25,865,000 in taxable general obligation combined-purpose bonds, awarding the sale to RW Baird at an average interest rate of 4.162% and reporting a premium / interest cost of $2,153,002.60.
The board’s financial presenter, identified in the record as a staff member, read bids and market comparisons and recommended acceptance of the RW Baird offer. The staff member said, “First bid that I have is RW Baird, out of Milwaukee... they have a premium of 19¢... $2,153,002.60 for an average rate of 4.162.” The presenter also summarized competing bids: KeyBank Capital Markets submitted an average interest rate of 4.4%, and Jefferies LLC submitted a bid averaging about 4.288891%.
The presenter placed the district’s bids in the context of recent Oklahoma sales, citing a City of Moore tax-exempt sale and more distant comparables such as Edmond and Tulsa Public Schools. The presenter said the taxable-to-tax-exempt equivalents and recent sales indicate the district’s result is “right in line” with market activity and noted the district’s new valuation rose 9.6% this year versus a forecasted 6%, which the presenter said keeps the millage rate “right in line” with projections.
Board discussion was procedural. A motion to accept the low bid — recorded in the transcript as, “I make a motion to accept the low bid of $2,153,002.60 at an interest rate of 4.162 from RW Baird” — was made and seconded. The subsequent roll-call vote was Keane: yes; Lay: yes; Gibbs: yes; Green: yes; Adamson: yes. The motion carried 5-0.
At a separate but related agenda item, the board approved a resolution authorizing the issuance of the $25,865,000 taxable general obligation combined-purpose bonds and authorized staff to submit documents for legal review and register the bonds with required agencies. The staff member explained the district must submit documents to the district attorney and the attorney general for legal review and register the bonds with DTC, the secretary of state and the state Department of Education so the issuance can close in September.
What the board approved was the bid award and the procedural steps to finalize the bond issuance; the transcript contains no discussion of specific projects to be funded from the bond proceeds or of changes to the district’s millage limits beyond the valuation and rate comments in the presentation.
