By CRISTINA JANNEY
Hays Post
The Hays school board voted Friday to let bonds for its $143.5 million building project approved by voters in May.
Dustin Avey, managing director of Piper Sandler, the district's bond counsel, told the board Friday the school board had secured a 4.12 percent interest rate for the full term of the 30-year bonds.
This saved the district about $6 million from the height of the bond market a few months ago and will mean the district will be able to keep the mill levy at what it estimated during the bond election.
"It think it starts the project out on the right foot relating to meeting the commitments that we communicated to voters during the project," Avey said.
The main project under the bond will be the construction of a new high school, which will include an auditorium. The bond will also renovate the current high school into a middle school and renovate the current middle school into an elementary school. Roosevelt and O'Loughlin elementary schools also will be renovated.
Lincoln Elementary School and Rockwell Administration Center will be closed. The Westside school program will be relocated.
The district received an A+ bond rating, which Avey said was very good considering the district had not issued any bonds in 30 years.
In addition, Avey said the school board should be able to invest part of the bond money during the term of construction, which could net $5 million.
The bond projects are not anticipated to be complete until 2025.
The district will also be paying off the bonds with a half-cent city sales tax. Piper Sandler figured no growth in sales tax revenue when developing the bond issue.
Avey said this means that a growth in sales tax revenue, which is likely, would allow the district to pay off the bonds early.
The sales tax will go into affect as of Oct. 1. The property tax increase will be included on property tax statements received by patrons in November 2022.