December
2004 Knightly News
Bond Fund for New Building and Improvements Q & A
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When was the bond sale date for the construction funds?
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Our bonds were sold from June 2 to June 17, 2004.
Q. What was the district’s credit rating for the
sale of the bonds?
-
Moody’s Investors Service assigned a rating of A2 to Otsego Local
School’s facility construction and improvement bonds.
-
What rate were the bonds sold at?
-
The average rate the bonds were sold at was 5.02%. This includes the cost to broker for the sale of the
bonds.
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Who purchased the bonds?
-
Banks, insurance companies and asset management agencies
purchased the bonds.
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What kind of bonds did these institutions purchase?
-
78% of the bonds sold were term bonds, 21% were serial bonds, and 1%
was a capital appreciation bond.
-
How has the district invested the bond proceeds?
-
The bond proceeds are currently invested in Federal and Government
Agencies and US Treasury Notes.
-
What interest rate is the district receiving on the bonds?
-
The average effective yield in September was 2.9%.
-
How much $ have the bonds generated in interest?
-
$90,123.50 has been received in interest as of September 30, 2004.
-
How will the district spend the interest received on the bonds?
A.
The interest funds as anticipated will be spent on the
construction project.
Project
Costs Breakdown
In May, the final master plan report for Otsego was
published by the Ohio School Facilities Commission. The report includes
the scope of work for the Otsego Local School District. Phase I of the
project is scheduled to be completed in 2007. Phase II will begin in
several years when our district qualifies for our OSFC dollars, after
another assessment of our district is completed by the OSFC, and when
the remaining needed local dollars are approved to meet our 45% share of
the total project.
Grand Rapids Elementary
(Phase II) **
Renovation
25,025 Sq Feet
$2,865,292.04
Reprogramming $82,956.00
Addition
$3,230,690.37
Haskins (Phase II) **
Demolish
24,233 Sq. Feet
$121,165.00
Specific Allowance
$803,549.34
Otsego Middle School (Phase I)*
Demolish
31,504 Sq Feet
$157,520.00
Specific Allowance $1,050,302.88
Weston Elementary (Phase II) **
Demolish
31,025 Sq Feet
$155,125.00
Specific Allowance
$614,026.00
Otsego High School (Phase I) *
Renovation
48,449 Sq Feet
$5,203,441.43
Reprogramming $372,502.00
Addition
30,745 Sq Feet
$13,907,497.51
Asbestos
$13,254.98
Demolish
63,515 Sq Feet
$75,330.00
New Elementary **
44,972 Sq Feet
$7,285,952.03
(Phase II)
New Elementary **
44,972 Sq Feet
$7,285,952.03
(Phase II)
Total Project Cost $43,224,556.61
* Phase I
Funded by March, 2004 bond
issue
** Phase II
funded by OSFC and Additional bond issue
Based on the figures above, the district will need a
bond issue (in current dollars) totaling $19,451,050. This amount will
cover the district’s 45% share. The state’s 55% share totals $23,773,506.
Together these two amounts provide the total OSFC project cost of
$43,224,556.61.
In addition to the OSFC total project costs are the
local initiative costs. The $18.4 million
bond issue that was passed in March, 2004 included $1.5 million
dollars for improvements to the three elementary buildings and $1.9
million for an auditorium. The $1.5 million and $1.9 million represent
local initiative activities that do not count toward our district’s 45%
share.
