BOE borrows $117 million

By KATIE MCDOWELL / Lifestyles Editor

The Shelby County Board of Education signed documents to borrow $117 million at a called meeting on Oct. 6.

Matt Adams, first vice president of Morgan Keegan, which served as the underwriter for the warrant purchase agreement, said it will serve several different purposes.

“One purpose was $78 million in new money for construction of schools,” Adams said.

About $31 million will be used to refund some of the school system’s debt service, while $5 million was issued for buses and another $5 million for HVAC systems for schools.

The bond issue was sold at a 4.6 percent interest rate for 30 years.

Shelby County Schools attorney Heyward Hosch said the bond will be “payable solely from the (board’s) share of the 10 mill tax.”

The “10 mill tax” is part of a school tax that was renewed February 2011 to help fund Shelby County schools.

Adams said the board also retained its Aa2/A rating.

“It’s a very good rating, especially for a school system that just came through proration,” he said.

In other business, the board also approved Scott Knight as the Helena Middle School principal.

Knight has served as the assistant principal of HMS for the last three years and has more than 20 years experience as an educator.

“I am so excited and humbled to be the leader of this school,” he said.