Central gets break on tax

• By CHANTE DIONNE WARREN
• Advocate staff writer
• Published: Nov 10, 2009 - Page: 4B

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Lower-than-expected interest rates on a $12 million bond sale for school construction and renovations in Central could result in a tax break for property owners, school officials said.

A 9.25-mill property tax approved by Central residents in May will pay the $12 million bond debt.

Originally, the tax was projected to cost the owner of a $200,000 home an additional $111.65 in property taxes each year. That estimate was based on an interest rate of 5 percent.

Central earned a lower interest rate of 3.95 percent on the bonds because of the school system’s A+ bond rating and its ample supply of emergency reserve funds, said Grant Schlueter, bond attorney for the school system.

“It (lower interest rate) saves money to the taxpayer,” Schlueter said.

Schlueter said he did not have the specific savings amount available, but it will lower property taxes for Central homeowners.

The Central Community School System School Board opened and accepted the bid Monday for the bond sale that will be used to construct a new elementary school and renovate existing schools.

Morgan Keegan and Company in Baton Rouge won the bid.

The school system will receive the money in December, and start constructing the elementary school and renovating and making safety improvements to other existing schools in July, said Central Schools Superintendent Michael Faulk.

There are 3,798 students attending Central schools.

The $12 million bond sale will be the second for the school system this year.

 In July, the system sold $16 million in bonds to be used toward school construction, including a new middle school.

In other action, the board approved an electronic communications policy for students and employees.