Westlake City Schools will place $24.41 million in bonds on the market in a competitive sale to fund the construction of a new elementary school on Feb. 22.
The Westlake community will have an opportunity to buy these bonds during a short time window before they go on the secondary market.
District CFO/Treasurer Todd Hopkins reports that a competitive sale will help boost yields on the bonds, but that yield will vary on maturity for the 33-year issue.
In November, Westlake Schools anticipated a yield in the neighborhood of 4.5 per cent. “I am hoping to achieve much better than that,” he said of the upcoming competitive sale.
A competitive sale helps the district provide the best interest rate for the community by collecting less tax and providing that benefit back to the community. It also offers community stakeholders the opportunity to participate in an investment that voters approved at the polls.
In December, the district took advantage of an opportunity to sell $9.19 million in bonds through a bank qualified sale. That sale allowed the district to secure a lower interest rate, creating a significant savings during the repayment period over the life of the bonds.
CFO/Treasurer Todd Hopkins said the district is providing the opportunity for residents to invest in their schools. Residents will be able to see a tangible impact on their investment with the construction of the new elementary school.
On Feb. 22, once an underwriter is selected, the district will open a one- to two-hour window to provide residents the opportunity to purchase bonds. Potential buyers must be available by phone on Feb. 22. Bonds will be sold in $5,000 minimum increments.
Anyone interested in buying Westlake City Schools’ tax-exempt bonds should contact Hopkins by Feb. 20 with their name and phone number. Call 440.835.6301 or email email@example.com<mailto:hopk