Fayetteville School District No. 1 of Washington County hopes to complete the second phase of its new $113 million high school with bond proceeds if voters approve a 2.75-mill increase in the district’s property tax rate Monday.
The additional revenue will back $19.6 million of general obligation bonds and $31.5 million of no-interest qualified school construction bonds.
The tax is expected to generate a total of $51 million and is set to expire in 25 years, when the final bonds mature.
The district said the zero-interest QSCBs would reduce debt service by $29 million compared to conventional GOs.
Last year, voters rejected a larger millage hike 3,672 to 6,382. The increase would have supported $110 million of bonds for the new high school.
Despite the rejection, the district was able to begin construction on the first phase of the high school project with the sale earlier this year of almost $45 million of the QSCBs, authorized as part of the 2009 federal stimulus package.
Superintendent Vicki Thomas said the district was notified in June that it was eligible for the QSCBs.
The first phase, which is to be completed by the 2013 fall semester, will add a performing arts center, a commons area, and a basketball gym. The second phase will include additional learning centers, a library, and other improvements.
Moody’s Investors Service rated the QSCBs sold earlier this year Aa3. The district’s $67.6 million of outstanding GO debt is rated A1.
