Stillwater, Okla., Public Schools is one step closer to a new Westwood Elementary school after the Board of Education voted Tuesday to approve a lease-purchase agreement with JP Morgan Chase, the lowest of three bidders.
The $25.45 million lease-purchase is estimated to cost the district $2.85 million in interest, compared to $3.1 million if they would have accepted the Rogers County Bank bid or $3.5 million with Bank SNB.
"We had three very aggressive bids," said John Wolf, a financial adviser for the district.
The district was pleasantly surprised the winning offer came with a 2.20 percent interest rate, well below the 2.5-3.0 percent the district budgeted for.
Chief Financial Officer Phillip Storm said that could amount to $1 million in savings the district could spend on other bond projects.
That's a bit of good news at a time when the state is looking at ways to deal with a nearly $900 million projected deficit for fiscal year 2017-18.
Stillwater Public Schools has received a $404,000 budget reduction this year and Storm estimates they could see a second cut of up to $250,000 before the end of this fiscal year.
The board also voted to sell the first $8 million in bonds -- from the $74 million in bonds voters passed in February -- to pay for the $5 million Sangre Ridge Elementary remodel and renovation project.
The board also voted to sell the last $15 million from the 2011 bond to pay off the remaining balance of Highland Park Elementary.
Ground work for the $1.5 million, which was funded from the 2011 bond, is underway, the buildings have been purchased, and the project should be complete this fall, according to Terry McCarty, assistant superintendent of operations.
The board voted during a special meeting Tuesday, which was not live-streamed, to postpone discussion on whether or not to accept a $400,000 bid from MPower to purchase the old Highland Park Elementary.
Board member Marshall Baker made the suggestion to delay a vote, saying the community would benefit from hearing the discussion in a more open forum.
