North Nodaway Proposes $675,000 Bond Issue

The North Nodaway School District will run a $675,000 general obligation bond issue on the April 4th ballot. It will extend, but not increase the current 59 cent debt service levy of the district. Proceeds will be used for the replacement and installation of heating, ventilation, and air conditioning; upgrading technology and fire safety district wide; resurfacing parking lots; purchasing buses; and complete other projects as remaining funds permit.

Passage of the bond issue requires four sevenths majority. Bonds will be sold in increments of $5,000, and investors will be exempt from federal and state income taxes. The average market interest rate is expected to be less than 2.5%.

The current 59 cent debt service levy will be extended six years. It was set to expire in 2019, but passage will extend it to 2025. This is possible due to growth in assessed valuation, interest savings from previous bond refinancings and prepayment of principal, and low interest rates.
The district will be able to prepay the bonds at no penalty should fund balances become large enough for that to occur.

Local investors will have an opportunity to purchase the bonds prior to them being offered to others. If you are interested in purchasing some of the bonds, please notify the district, and they will contact you after the election.

The district can expect to receive an AA+ rating by Standard & Poor’s on the bonds. Missouri school districts are eligible in most cases to participate in the Missouri Direct Deposit Program, which will provide each issuer with an AA+ rating.