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Breaking News: Garage Sale Correction

Finance Pettisville New School With Notes, Not Bonds?

Steve Switzer, superintendent of the Pettisville Local School district, said the district is considering selling notes, rather than bonds, to finance the new school building.

The Pettisville School Board held a special meeting, Monday, Nov. 10, in Columbus with Bricker and Eckler, a legal firm acting as bond counsel, and Wachovia, a financial firm.

Switzer said the board was told recently, bonds were sold with a 5.75% interest rate.

“We were looking at 5%,” he said.

An interest rate can’t be set, because the interest rate is determined the day the bonds are sold.

An option would be to sell notes, rather than bonds.

Swtizer explained bonds are sold once, and mature over 28 years. Bonds are callable, meaning they can be paid off early.

Notes, on the other hand, are sold every six months to a year. After six months or a year, the notes are paid, and new notes are sold.

Switzer said one advantage of notes is the interest rate is substantially less, at 2% to 3%.

He said he expects action from the Pettisville School Board at the Monday, Dec. 8 meeting. The meeting starts at 7:30 pm. It will be held in the school media center.

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