The money is in the bank.
Hinsdale High School District 86 has $70 million ready to pay for upcoming construction projects at Hinsdale Central and Hinsdale South high schools following a July 15 bond issue.
The bonds were sold to J.P. Morgan Securities LLC at an interest rate of 2.964, Jennifer Currier of PMA Securities told the board at its July 25 meeting.
Eight firms bid on the bonds, with rates ranging from J.P. Morgan’s low offer to 3.053 on the high end.
The district will pay $97.8 million in interest on the bonds, which must be paid off by 2039. Initial estimates for debt service were $102.4 million, but lower interest rates will translate to $4.5 million in savings for the district.
“We were very pleased and we certainly hope you all are as well,” Currier said.
The is the first bond issue to fund a host of construction projects slated for Central and South after voters approved a $140 million referendum in April.
Board member Marty Turek asked if the board should look at expediting the next bond issue, given the low interest rates.
Josh Stephenson, the district’s chief financial officer, said the bond sales are structured so the payback period will be 22 years instead of 20, translating to a lower annual cost.
“If we condense the bond sales, that is going to increase the cost to taxpayers on an annual basis,” he said.
The construction timeline has yet to be finalized, as district officials continue to meet to discuss the order in which the projects should be started.
A more definitive schedule is expected to be the product of the Aug. 16 facilities committee meeting and will be on the agenda for board discussion Aug. 22.
The board also plans to appoint a special committee to help oversee the construction process. Community members with a background in building, finance and other related fields will be invited to apply for membership.
Superintendent Tammy Prentiss is drafting an application for potential committee members. Pending board approval Aug. 8, the application will be available to the public Aug. 9. The board hopes to have a list of candidates to review by Aug. 22.
Board member Kevin Camden suggested residents who want to know more about the projects should start attending the board’s finance and facilities committee meetings. The finance committee meets at 8:30 a.m. the third Wednesday of every month, and the facilities committee meets at 8:30 a.m. the third Friday of the month.
“If you’re really interested, start coming to those or making yourself familiar with what’s occurring,” he said.
