City OKs school bonds
Published 9:15 am Wednesday, September 24, 2008
By By Lisa Tindell – news editor
The Brewton City School Board can move ahead with plans to construct a new middle school after the Brewton City Council approved the authorization of a $20 million bond issue through the city.
Blount said the A rating held by the City of Brewton would help garner a better interest rate for the bond issue.
Blount said the issue would be a 15-year amortization and makes good sense for the city and the school system.
The bond issue will be paid from school funds, including taxes and the 10-mill funds the school currently receives, City Clerk John Angel said.
After hearing from Blount, council members voted to authorize the bond issue by passing an ordinance indicating their decision.
The ordinance states, in part, that the Brewton City Council and the Brewton City School Board find and determine that it is necessary and desirable to finance the costs of the school building improvements through the issuance of its general obligation school warrants, serious 2008 and to pay costs incurred in connection with the issue of the warrants; the council finds and deters that its assistance to education is desirable for the growth and development of the city; and the issuance of the warrants on behalf of the Board will in no way create a charge again the city's constitutional debt limit.
Blount said his firm would use “good sense” to determine the best time to get into the market for the funds.
In other business, the council: