NewsMarch 13 2019

Lyman School approves borrowing $2.3 million for building project

Posted by Lucy

Lyman School Board approves borrowing $2.3 million for building project
Members of the Lyman School Board approved a resolution to authorize borrowing $2.3 million for the estimated $8 million dollar building project during Monday night's board meeting. Financial advisor Toby Morris of Dougherty & Company, LLC from Pierre presented a comprehensive borrowing statement calling for the school district to borrow $2.3 million for 20 years, paying a fixed rate of 3.6 percent interest with a five-year call to allow the district to pay it off or pre-pay. Morris said, “We ready to go to market in the next few weeks to present this document to investors.” He went on to explain that by paying a premium up front, the district can lock in the low interest rate and save money over the life of the loan. You can't pay off the loan for five years.... that's the lock out period in exchange for the low interest rate,” said Morris. “That's borrowing pretty cheap.” Superintendent Rob Davis clarified to the board members that the district will use $5.5 million of reserve funds and borrow $2.3 million for the building project. Yearly loan payments will be $165,000 to $170,000. Pick up a copy of the March 13, 2019 issue to read more.

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