At the School Board Meeting on Tuesday night the school board local building authority approved the issuance of $4 million in bonds for the school building projects. The bonds will be purchased by Zions Bank. The bank has agreed to purchase them at the same rate as the subsidized rate under the federal government program used for the bonds. This means that the school district will be getting interest free money.
Under the Federal Stimulus program, special offers were made available to schools and other government entities for building programs. Morgan was able to qualify for one of these programs.
The timing of the school board was perfect. Some other organizations have paid between one and two percent interest on the bonds. Morgan will pay no interest. In addition the money will be made available to the district in advance of when it is needed to pay the contractors, so the $4 million will accrue interest until it is paid out. This interest will add to the money available to the district for the building program.
The funds from these bonds will be used to build the new PE facility as well as the new bus garage. Construction is expected to be completed this year on the facilities.