Ferguson-Florissant Could Issue up to $51 Million in Bonds

The addition of a new bond issue moved closer the realm of a strong possibility last week during the Ferguson-Florissant Board of Education meeting.

The committee, represented by Lorenzo Boyd, senior vice president of public finance for Stifel Nicolaus and Co., presented the board’s options of a no-tax increase as well as with a tax increase, which could be up to $51 million.

With a no-tax increase, the district could issue as much as $23 million in bonds, Boyd said during his presentation.

There are options for as much as a 20-cent increase, and for example, a 5-cent increase could result in up to $30 million in bonds. A 20-cent increase would be needed for $51 million.

For personal property taxes, that could mean a number of scenarios. For example, a home valued at $120,000 would pay $68.40 annually for a no-tax increase issue, but for a 10-cent increase, that same taxpayer would pay $91.20.

The district is considering a number of scenarios to help it faces as much as $10 million in shortages for the 2013-2014 school year.

In 2010, voters approved a $25-million bond issue for the district that went toward supporting student achievement, building repairs and upgrades for student safety.

The committee considered needs of schools, such as infrastructure. According to committee documents, all recommendations for infrastructure upgrades, including window replacements and HVAC unit replacement could total $80 million.

“A bond issue for $40 million would cover the cost of window/door replacement and A/C,” the document states. “This would provide A/C district wide with no window units and all windows would be upgraded.”

The board is continuing to explore all options before the possibility of issuing any bonds.