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District to Receive Stimulus Credits for New FHS

Posted by Alan on September 11, 2009 3:50 PM | Filed in News |

FHS_front.pngThe Fayetteville School District learned today that the Arkansas Department of Education plans to release $113,443,000 in stimulus credits on September 21. Applying the rules of the program and understanding that a limited number of school districts applied for credits by the 2009 deadline, the new Fayetteville High School project could receive approximately $54 million of these credits for use in financing the project.

This will significantly lower the district's interest rate on the bonds and reduce the date the bonds will be paid off by perhaps as much as six years.

The Stimulus credits could equal an interest savings of approximately $63,000,000, depending upon market conditions at the time the bonds are being offered. According to Dr. Lisa Morstad, chief financial officer of the district, "Due to the Stimulus Act, this is a very unique opportunity in which the district will be able to finance the new high school under extremely favorable terms. We are uniquely positioned in 2009 to take advantage of these credits, since the 2010 credits cycle will likely have many more participants, making the allocations much smaller. We're grateful to Dennis Hunt and the staff at Stephens, Inc., for informing us of this opportunity and helping us through the process."

Use of the credits for the new high school is contingent on the passage of the proposed millage increase on September 15.