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A good interest rate and an upgrade of rating are two areas
of good news for Friendswood ISD. Higher ratings save FISD and
its taxpayers' interest cost over the life of the bonds as well
as future issuances.
FISD sold $8.225 million in bonds which were approved at last
December's bond election at a special board meeting on Feb. 16,
2006.
The bonds were sold at a true interest cost of 3.75 percent
through a private placement with Bank of America and RBC Capital
Markets.
The District's financial advisor Terrell Palmer of First Southwest
Company, illustrated savings from this method of sale to be over
$130,000.
Proceeds of the bonds will be used to pay for or refinance
bonds for projects around the District including projects at
five of the six FISD campuses.
At Cline Elementary, bond projects include carpet, roof and
HVAC replacement, fire alarm upgrades, wall enclosures, site
work drainage, and phone system upgrade.
At Westwood Elementary, projects include roof and HVAC replacement,
food service equipment, ceiling work, fire alarm upgrades and
site work drainage.
Four projects will be underway at Bales Intermediate. Carpet
and roof replacement, site work/drainage, and phone system upgrade
are part of the bond package.
Friendswood Junior High work includes six areas. These areas
include carpet, roof and HVAC replacement, food service equipment,
fire alarm upgrades and site work/drainage.
At Friendswood High School, work in the bond package includes
carpet and HVAC replacement, new track, fire alarm upgrades,
site work/drainage, phone system upgrade, water line replacement,
auditorium catwalk, multipurpose field, and track/soccer storage/locker
room.
It is expected that a majority of these projects will be completed
by the start of school in August 2006.
No tax increase is needed, according to Palmer. At this time,
FISD does not expect to increase the interest and sinking fund
tax rate from its current rate of $.136/100 in net taxable value
to pay for the bonds.
During the process of the issuance, FISD received an upgrade
of the rating from Moody's Investors Service to A1 from A2. This
rating increase was based upon strong socioeconomic profile,
moderate tax base growth, low debt burden and solid reserve levels,
according to Palmer.
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