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Mahomet-Seymour approves sale of $4.8 million health, life and safety bonds; funds to pay short-term projects including Lincoln Trail roof
Summary
Mahomet-Seymour CUSD 3 approved a resolution to sell $4.8 million in general obligation health, life and safety bonds to Webster Bank; district expects proceeds March 6 and will use money for short-term safety and security projects, including a Lincoln Trail roof repair contract.
Mahomet-Seymour CUSD 3’s Board of Education voted Feb. 18 to sell $4.8 million in general obligation health, life and safety bonds to Webster Bank and to move forward with related projects, including a planned roof replacement at Lincoln Trail Elementary.
The board approved a resolution authorizing the sale of the bonds; district staff and the board’s financial advisor described the borrowing as short-term, with repayment scheduled over roughly two years and no net increase to the district’s tax rate because other levy elements are declining. Anne Noble of Stifel, the district’s financial advisor, told the board Webster Bank offered the lowest bid and a rate of roughly 3.87 percent. “You will receive your funds on March 6,” Noble said.
Why it matters: the bond proceeds will fund prioritized health, life and safety projects the board has previously approved. District leaders said the short payback keeps financing costs low and allows the district to address urgent repairs and security upgrades without a voter referendum this year.
Board discussion and bidding: Noble said staff solicited direct-purchase offers from 32 banks and received four bids for this short-term issue, a solid showing for notes with such a brief repayment term. Because the bonds are being sold by direct purchase rather than a public sale, the bank will hold the issue in portfolio instead of offering it to retail investors.
District staff noted the levy to support bond payments must be filed with the county clerk by the end of the month. Heather (district finance staff) told the board the estimated bond tax rate for the first year is about $0.62 per $100 of equalized assessed value, then falling sharply in the subsequent year to about $0.19 per $100 as the borrowing is repaid.
Lincoln Trail roof and project details: staff also presented the low construction bid for the Lincoln Trail roof (labor only) and recommended awarding the contract to RB Crother. The lowest labor bid reported to the board was $102,110. District staff said materials will be purchased through the OMNIA cooperative (Garland Materials is the listed supplier on that coop) with an estimated materials cost of $318,626 for base and alternate sections. The project includes a $20,000 contingency; staff also noted a $92,000 credit from a recent controls project that can offset other expenses or allow the district to pick up an alternate scope.
Board members expressed appreciation for the team that moved the bond package and projects forward on a tight schedule. The board approved the resolution and the roofing contract by roll-call votes.
What’s next: With the sale approved, district staff will file the levy, finalize closing documents with bond counsel and accept bond proceeds in early March; construction scheduling will follow contract finalization and material procurement.
