Kane County School District recently sold the General Obligation bonds through a competitive bidding process on the open market in order to build the new elementary school in Kanab. Kane School District advertised to sell the bonds with a face amount of $21,150,000. Eleven companies across the country placed bids to purchase the bonds. Robert W. Baird & Company was awarded the bond purchase as a result of the lowest interest rate. An additional premium of $2,392,328.10 was paid by Robert W. Baird & Company to purchase the bond. The additional premium results from Utah’s AAA bond guarantee coupled with the high bond rate given to Kane School District by Moody’s rating agency based on the district’s financial stability and past financial decisions. After the district paid all of the bond seller expenses, the district has received a net amount of $23,311,210.23 available for the construction of the new elementary school. The principal amount of $21,150,000 will be repaid over a 20-year period with a net interest of 1.36% on the bonds. This is one of the lowest interest rates awarded to a school district’s General Obligation Bond in the state of Utah and will, in turn, save the taxpayers millions of dollars over the life of the bond.
Construction timelines for the new elementary school are as follows:
- January 26, 2021 plans submitted by our architect to the general contractor
- February 2, 2021 construction documents available to receive bids
- February 24, 2021 award construction bids
- March 2021 groundbreaking will begin
- August 2022 estimated completion of the new elementary school
I’d like to thank Business Administrator Cary Reese and the Kane County School Board for all of their collaborative efforts to secure the General Obligation Bonds and build a new elementary school.