The Claremore Board of Education set a date for the sale of district building bonds, issued in 2007 for the construction of Catalayah Elementary, the new CHS gymnasium, Lantow Field and other renovations.
Representatives of the firm of Stephen L. Smith, Corp. (bond advisors) recommended the district sale for existing bonds in May, said Claremore Superintendent Mike McClaren.
The proposed date for the sale of bonds is May 17. Money will be used to pay for the schools’ new facilities.
The $42,645,000 in bonds have been issued in separate series throughout a five-year period with the next amount series of $4,500,000 to be sold in May.
Bids are taken from interested buyers, usually large institutional investors and are sold at the lowest interest rate offered.
McClaren said the district keeps tax levy from the sale of bonds, however, Claremore schools cannot use the money for extra expenses or teachers’ salaries. Part of the amount from sale will go into the district’s sinking fund, which is similar to an escrow account.
The $4.5 million will become due $1,125,000 in two years from their date and $1,125,000 each year after until paid, usually over the course of a 5-10 year period, he said.