The bond sale for the South Fayette School District’s $4.33 million farmland went better than anticipated July 17.
Jamie Doyle, the district’s financial advisor from PFM Financial Advisors LLC, presented to the board during its July 17 meeting the competitive internet auction that drew 13 bids, which yielded a slightly lower interest rate than she projected.
“I have nothing but good news,” Doyle said. “The market cooperated, and the interest rates are a hair lower than what they were when I was here last month.”
Robert W. Baird & Co. won the auction with a true interest cost bid of 3.82 percent. The millage equivalent per year was expected to be .10 of a mill, but the Robert W. Baird bid will take a .08-mill hit.
“The proposed local effort, almost all of which is interest, is lower by $300,000,” Doyle said.
Doyle also mentioned that the district’s credit rating was improved from an AA3 to an AA2, meaning the district will not have to pay for bond insurance. That will save the district “at least” $10,000, she said.
Earlier this year, the board voted to purchase 113.9 acres of farmland from Dimun Family Limited Partnership.
The farmland, which is across the street from the middle school on Old Oakdale Road and off Battle Ridge Road, could be used for future expansion of the campus for the ever-growing district. The purchase is similar to that of one made in the early 1970s when the board bought part of the Boch Farm, which is currently where the high school resides.
Last month, the board voted to take $1.5 million from the $2 million left over from the high school construction project loan and apply it to the purchase of the farmland.
Anthony Ditka from Dinsmore & Shohl was expected to present an amendment to a previous resolution to the board, changing the verbiage of the high school construction project to apply money to the farmland acquisition.
Ditka said that would have to be pushed back a month, though, because a required advertisement did not run prior to the meeting. Ditka said the board will be able to vote on the amended resolution next month and that it doesn’t hinder the process other than the month delay.