Warren County Schools is one month out from beginning an expansion project at Bobby Ray Elementary and bonds to cover expenses are being sought.
Director of Schools Bobby Cox said an effort is being made to split the $6 million Warren County government is providing the school system between Bobby Ray and West Elementary as evenly as possible.
Requested of the county Financial Management Committee was Bobby Ray’s half due to the project beginning after the school year ends next month. However, according to Finance Department director Linda Hillis, it will save the county $35,000 if it issues the entire $6 million at one time.
“The recommendation from Cumberland Sec-urities is to go ahead and do that full $6 million at one time to save on issuance costs,” she said. “It’s going to make about a $35,000 difference in issuance cost, rather than doing $3 million and then, a few months later, doing the remaining $3 million.”
The initial $6 million is the first portion of a $12.5 million bond issue approved by resolution by the Warren County Commission in February. The remainder, $6.5 million, will be issued once jail plans are complete.
With committee approval, the county will go out for bids on the bonds.
“We will bid the interest rates, so we will know more about the percentage rate and who the bid is awarded to once that process is complete,” said Hillis. “The annual payment will also be determined at that point as well. It has been recommended the county not go less than a 20-year debt payment schedule.”
Committee members unanimously approved the request. Because the Warren County Commission gave permission for the bonds in February, further consideration is not needed.