CLEARFIELD – The Clearfield Area School District Board of Directors approved a bond sale, which amounted to $9,820 million for its high school project at its regular meeting Monday night.
The winning bidder was Robert W. Baird with the lowest true interest costs of 2.56. The Baird bid was one of only two placed without bond insurance, saving the district $60,000, reported Ryan J. Brockman of the Public Financial Management (PFM) Group.
“We’re currently at almost all-time lows. It’s a great time to borrow,” he told the board. He said that Moody’s Investors Service gave the district an A1 credit rating, and it reflected the district’s “satisfactory financial position, modest tax base and manageable above-average debt burden.”
According to him, eight firms participated in the bond sale. He said that 42 bids were placed, and Baird had placed one with an interest rate range of between 2.0 to 3.0 percent.
Brockman said that the proposed local effort was $8,622,591 after the state reimbursement. He said it would be a savings of nearly $900,000 from the initial plan, which was developed back in July.
When asked about the Internet-based bond sale, Brockman explained the auction lasts 15 minutes. He said the Baird bid came at 11:13 a.m., and when others followed one-minute after, the auction was extended to 11:16 a.m. due to a “two minute rule.”
He said the participating firms cannot see the lowest bid at any point during the bond sale. He concluded by saying that at the federal level, they’ve announced plans to purchase long-term treasuries to drive down rates.
“They’re shifting out of stocks and into bonds, and it’s been benefiting the school districts and municipal governments,” he said.
Joseph Pierce, attorney at law for Eckert Seamans, Cherin & Mellott, presented a resolution, acknowledging the board’s acceptance of the bond sale for the 2011 bond series.
He said it would take approximately 20 days for the state’s Department of Community and Economic Development to approve it. He said it would go to closing Oct. 31.
Board members Dave Glass, Mary Anne Jackson, Tim Morgan, Rick Schickling, Larry Putt, Susan Mikesell, Phil Carr and Dr. Michael Spencer voted to approve the resolution. Board member Jennifer Wallace was absent from the meeting.