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Show Bond sale, successful. By DONETA GATHERUM FARMINGTON The sale of $4,730,000 in general obligation bonds and $40,900,000 in refunding bonds to Prudential-Bache was good news for the Davis School District. The interest rate of 7.156 percent was better than expected and caused Supt. Richard Kendell to remark, "We caught the bond market at a very opportune time." There were eight solid bidders for the sale. Financial Advisor Larry Lar-ry Denham commented, "This was the second largest competitive bond issue sold on Wall Street this week." Savings. from the refunding bonds will be used to give fiscal stability to the district's participation participa-tion in the health insurance program prog-ram for employees. Approximately Approximate-ly $2 million of the $4 million in new GO bonds will be used for the renovation re-novation and addition to Central Davis Junior High School. Coupled with the good news of a successful bond sale, was the bad news that Davis District has been down-graded by the Moody Index from a 1-A rating to an A rating. According to Mr. Denham, this lower bond rating came because of the low fund balances in the district's dis-trict's reserves. Davis District is currently operating with a reserve of $160,000. Financial experts, auditors au-ditors and comparisons with other school districts indicate the district should have a reserve of about $5 million. |