Board approves sale of $4.5 million in bonds

PNT Staff Report

The Portales Municipal Schools Board of Education approved the sale of $4.5 million in bonds to help finance the new Lindsey-Steiner Elementary School at a special meeting Tuesday, allowing the project to proceed at full steam.

“This is a proud time for you folks,” said Al Clemmons of George K. Baum and Company, the school district’s investment firm. “It’s really a good thing you didn’t have any bids three weeks ago. As you can see from the bid sheet you got a very good set of bids.”

According to School Superintendent Randy Fowler, an earlier attempt at advertising for bids returned no offers. Fowler said Clemmons had suggested the reason for that may have been because of the volatility in the market when the first bid came up, but he’s not sure.

The low bid for the eight bonds was awarded to First Southwest Company of Dallas. The true interest cost of their offer was computed at 3.58431 percent, according to the bid sheet.
“These are bids, that three weeks ago to a month ago, would have been right at 4 percent,” Clemmons said.

Clemmons said the low rate demonstrates the confidence that the rating agency, Moody’s, has in the leadership of the district.

In other business board members:
• Accepted a $1,200 donation from Big Valley Auto from their “Be True to Your School” campaign.

• Approved a budget adjustment of $83,967 increasing the Title I budget because of a carryover.