July 12--MADISON COUNTY -- The Madison County School Board authorized issuance of almost $10.5 million in school building revenue bonds at its monthly meeting Thursday.
The board approved a recommendation from the Madison County School District Finance Corporation to issue slightly more than $10.49 million in bonds to help finance renovation projects at three district elementary schools.
Total cost for the projects at Kit Carson, Daniel Boone and White Hall Elementary schools is just over $12.1 million.
The board then accepted a bid for that amount from D.W. Wilburn Construction of Lexington, pending approval from the Kentucky Department of Education.
Board member John Lackey abstained from voting and Becky Coyle was absent.
The board also approved the finance corporation's recommendation to refinance $11.08 million in bonds issued in 2005.
During a finance corporation meeting prior to Thursday's school board meeting, consultant Joe Nance of Ross Sinclaire & Associates of Lexington, said refinancing at a lower interest rate would mean significant savings for the district. The move also will increase the district's future bonding potential by $1 million, Nance said.
"The current interest rate on the 2005 bonds is 4.2 percent. The new rate we will be getting will be 3.1 percent. Your net savings will be $53,000 per year for the remaining life of the bonds, a projected $600,000 savings," Nance said.
Nance told board members that even with funding for the three renovation projects and its current bonds, the district will still have $2 million per year of cash in its restricted funds, which it can continue to accumulate toward future projects.
The district has a projected bonding potential of more than $39.8 million, Nance said.
The board also addressed several other facilities projects including approval of:
--Design and development documents for the renovation of the district's new administrative office building
--A $110,000 contract with Sherman, Carter, Barnhart Architects of Lexington for a new press box at Madison Southern High School. Thomas said the press box is being replaced at the recommendation of the district's insurance provider because of safety concerns.
--A contract for just over $63,000 with the Allen Company for paving parking lots at Foley and Madison Middle schools.
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