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|Savings On Elementary School Expansion Bonds
|Despite a second threat of a lawsuit by a losing bidder, taxpayers will be saving some money on the now-officially-underway expansion of Mable Woolsey Elementary School in Knoxville.
The Knoxville School Board during a special meeting Thursday night voted to officially issue the bonds that will pay for the lions share of the four-classroom addition at the school -- bonds totaling $1.2 million dollars, with district reserve funds paying for the remaining half-million dollars in the project.
David Pistorius is Vice President of Bloomington-based public finance management firm First Midstate, and says money is being saved because of low interest rates the bonds were sold at.
"Originally when Larry and I started talking about the project, we ran some numbers. We ran them up in the 5% range to be kind of conservative because I wasn't sure of the timing at the time we began the thought process. We came iin at just under 4%."
Pistorius says the 3.992% interest rate will actually mean $80,000 dollars less in interest payments over the life of the bonds.
The district will make the first payment on the bonds December first, using an already-established tax levy for bond payments, which district officials have said means it won't cost taxpayers extra money to build the addition.
Some work on the site of the expansion has already been done, as the district this week got another letter threatening to sue by Michigan-based Gleeson constructors for not being picked versus Galesburg-based Hein Construction.
District-202's attorney says threats won't keep the project from going forward.
|08 14 09 by Newsroom
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