School board hears finance report; refinancing saves "just over $13,200,000," district finance director says
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Summary
Liberty Public Schools finance director reported a Nov. 4 bond refinancing that reduced the district's average interest rate to about 3.02%, shortened the bonds' average life by roughly 2.8 years and saved just over $13.2 million in interest costs; two donations were also announced.
Miss Cindy Sullivan, the district's finance director, told the Liberty Public Schools Board of Education the district completed a successful bond refinancing sale on Nov. 4 that reduced its average interest rate and produced significant interest savings.
"It did save us just over $13,200,000 in interest costs," Sullivan said, noting the average rate dropped from about 3.83'to 3.87 percent down to about 3.02 percent and that the refinancing shortened the average life of the bonds by nearly 2.8 years. She said the transactions are scheduled to close on Dec. 2.
The finance report also listed two donations to district programs: a Ford F-150 donated for Liberty High School's Automotive Technology program from Ford Motor Company in partnership with Gary Crosley Ford, and $953.35 in supplies donated by Office Depot/OfficeMax for Manor Hill Elementary.
Board members asked how the district plans for potential construction overruns and how bond proceeds will be managed. Sullivan said the district maintains contingency planning and uses district funds if necessary, and that alternates exist if project budgets leave surplus funds. "We talked, you know, how we have a contingency plan, and we do what we can and then make up the difference with district funds," she said.
Superintendent and operations staff also noted that some bond proceeds were redirected to address unexpected foundational issues at the Heritage project, requiring reallocation from contingency to cover repairs. Mr. Anderson said that issue reduced the scope of other planned projects but that the district remains committed to delivering the bond promises to the community.
What happens next: the board accepted the finance report and requested continued oversight as staff finalize closing documents. Sullivan said she will provide follow-up details as the Dec. 2 closing approaches.