April 5, 2001
Seeley Swan Pathfinder
Seeley Lake, Montana
Missoula County Public Schools conducted a successful competitive bond sale on Thursday, March 29 - the second sale associated with a $20 million, 20-year high school bond that was approved by voters in spring 2000 to finance construction and remodeling at MCPS high schools.
The amount of the sale was just under $10 million. Six bids were received. D.A. Davidson & Co. submitted the winning bid. The True Interest Cost bid by D.A. Davidson & Co. was 4.5774 percent, well below the 5.9 percent interest rate that was used last year to estimate the cost of the high school projects. Including the Series 2000 bonds sold previously and the Series 2001 bonds sold Thursday at the lower rate, taxpayers will pay $2,684,000 less in interest payments over the life of the loan, based on the 5.9 percent projections.
As was the case with the bonds sold in 2000, the District's timing in conducting the sale was excellent, as recent developments in the US economy and actions taken by the Federal Reserve have lowered market interest rates, said Aaron Rudio, of D.A. Davidson & Co. The final interest rates on the bonds are lower than the interest rates used in estimating the cost of the project to voters prior to the election. This will result in lower taxes for repayment of the bonds than voters were counting on when they made the decision to approve the project, Rudio said.
The MCPS Board of Trustees is expected to award the bid for a new media center/library at Seeley-Swan High School at its monthly meeting at 7:00 p.m. on April 10. The library is the first of several projects funded by the sale of these bonds. Other construction projects will begin at Missoula's high schools this summer.
For additional information, contact Bruce Moyer, MCPS Director of Business Services, at 406-728-2400, ext. 3020.