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Gurdon board approves $2.33 million tax-exempt bond sale at lower-than-expected rate
Summary
The Gurdon School District approved a $2.33 million tax‑exempt bond issuance after a competitive sale produced a blended true interest cost near 4.09%, yielding about $30,000 more for construction and reducing annual debt service by roughly $10,000 compared with prior estimates.
The Gurdon School District board unanimously adopted a resolution authorizing the sale of $2.33 million in tax‑exempt bonds after a competitive bidding process generated a blended interest cost lower than previously projected.
Jason, the board’s bond advisor, told directors that five firms bid on the issue and the low bidder, FHN, offered a tax‑exempt blended rate around 4.09%. “To put that in perspective, when we were together last, you were looking at payments based on a 4.75% estimated rate,” Jason said, adding that the lower rate produced about $30,000 in additional construction proceeds and reduced annual payments by approximately $10,000. He also said the district will receive net proceeds of about $2,265,000 at closing on July 16.
The advisor walked the board through the maturity structure, noting the issue was arranged into multiple maturities and that an optional redemption date (call) is set for Oct. 1, 2031. He also explained ongoing compliance obligations tied to tax‑exempt debt, including continuing disclosure to an electronic repository and the implications of Arkansas’s intercept mechanism for higher credit ratings.
Board members raised no substantive objections and approved a motion to adopt the completed resolution provided by Stevens (the district’s financing advisor) by unanimous consent.
Next steps: the bonds are scheduled to close July 16, when the district will receive proceeds and can begin drawing construction funds under the three‑year spend rule for tax‑exempt proceeds.
