Ascension schools sell bonds at 4.5%
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GONZALES — The Ascension Parish public school system sold $40 million in bonds Thursday.
Superintendent Donald Songy said the bonds were sold at a rate of 4.5 percent, the amount of interest the district pays to the buyer.
Songy said the school district wanted the sale held now because of current market uncertainty, and predicted the interest would have been closer to 5.5 percent had the sale been delayed.
The difference in the rates would result in savings of between $2 million and 4 million during the course of the bonds’ life, Songy said.
The sale involved the remaining portion of $70 million in bonds approved by voters in 2005. The bonds are to be paid off by 2025.
Voters approved a six-year extension of an existing 15.08-mill property tax to fund building five new schools, technology upgrades and renovation for Donaldsonville and East Ascension high schools. The money raised from the tax extension pays off the bonds that have been sold.
Higher construction costs have plagued the projects, Songy said.
Construction costs for each of the five schools has run between $2 million and $2.5 million over initial budgets.
The most recent construction contract — one for Lakeside Primary School — is the highest overrun at $3 million.
Songy said school officials would continue to use the system’s fund balance to offset the higher construction costs.
Superintendent Donald Songy said the bonds were sold at a rate of 4.5 percent, the amount of interest the district pays to the buyer.
Songy said the school district wanted the sale held now because of current market uncertainty, and predicted the interest would have been closer to 5.5 percent had the sale been delayed.
The difference in the rates would result in savings of between $2 million and 4 million during the course of the bonds’ life, Songy said.
The sale involved the remaining portion of $70 million in bonds approved by voters in 2005. The bonds are to be paid off by 2025.
Voters approved a six-year extension of an existing 15.08-mill property tax to fund building five new schools, technology upgrades and renovation for Donaldsonville and East Ascension high schools. The money raised from the tax extension pays off the bonds that have been sold.
Higher construction costs have plagued the projects, Songy said.
Construction costs for each of the five schools has run between $2 million and $2.5 million over initial budgets.
The most recent construction contract — one for Lakeside Primary School — is the highest overrun at $3 million.
Songy said school officials would continue to use the system’s fund balance to offset the higher construction costs.
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