At Monday evening’s Carroll School Board meeting, Trustees approved a parameter sale of $13,830,000 in Build America Bonds. With the expectation that the Federal Build America Bonds rebate program will not be renewed at the same level, if at all, for the next calendar year, the district opted to move forward with the final sale of bonds to complete the authorization under the May 2009 $138 million bond election.
School officials say bonds were priced and the sale was completed on Wednesday (December 15). Closing on the sale will be completed prior to December 31 as required in order to utilize the BAB program.
Under the Build America Bond program, the district can sell taxable bonds and then receive a rebate of 35 percent of the interest paid on the issuance. The School Board reviewed multiple options for funding the debt service of the obligations over the life of the bonds. Upon finalization of the sale, the district will receive almost $6.8 million in revenues through 2036 that the district has flexibility in allocating.
Rebates will typically provide CISD with about $333,000 per year. Lewis Wilks of Coastal Securities, the district’s financial advisor, reported the sale went well and the final amounts were within the parameters set by the Board of Trustees at their December 13 meeting.
Click here for more information on Carroll ISD’s ongoing 2009 Bond Program.