Mehlville school board weighs COPs refunding

Refunding savings will fund new districtwide auditorium

By Staff Report

A resolution authorizing the advance re-funding of bond-like certificates is scheduled to be considered this week by the Mehlville Board of Education.

The school board is scheduled to meet at 7 p.m. Wednesday, Feb. 15, in the boardroom of the Administration Building, 3120 Lemay Ferry Road.

As proposed, the resolution would authorize the advance refunding of certificates of participation, or COPs, issued in 2002 with L.J. Hart & Co. serving as the underwriter.

If approved, the resolution would authorize the sale of roughly $3.95 million worth of COPs to refund COPs issued in 2002 to fund the Proposition P districtwide building-improvement program.

The 2002 COPs are refundable on Sept. 1.

As proposed, the $8.54 million of outstanding COPs would be refunded in April by selling the $3.95 million in COPs and utilizing a reserve fund totaling more than $4.68 million, according to information provided to board members by Chief Financial Officer Noel Knobloch.

COPs issued in 2001 by the district were refunded in 2010 with a savings of roughly $2.2 million over 10 years and COPs issued in 2002 were refunded last year with a long-term savings of nearly $1.2 million.

Savings from the April refunding are projected at more than $2.8 million, according to Knobloch. The school district is anticipating a total savings of more than $6.2 million from the three refundings.

The savings will be used to fund the construction of a districtwide auditorium and renovations to the Witzel Learning Center.

No additional funds will be required from the community at this time, according to Superintendent Eric Knost.

The Board of Education last week voted to approve an architectural contract and time line for the auditorium, which is slated to be completed in August 2013.