JUNCTION CITY, Kan. — Following recent market conditions in favor of refinancing goals set by the Geary County Schools USD 475 Board of Education, as provided to district staff by Piper Sandler, the district acted on Tuesday to refinance and lock in new rates for the new Junction City High School bond debt. These new rates will result in an interest savings of $10.9 million.
Bond for the new facility was originally approved by voters in November of 2017 for $105 million. By the time the bid was out in 2019, the Consumer Price Index (CPI) adjusted the cost to build the facility from $105 million to $123 million.
The architectural design included a base bid package with multiple, individually priced alternates. The district desired to secure competitive pricing for all the projects’ alternatives, prioritizing them so that the Board of Education could implement these alternates as money became available. Competitive bids, for all alternates, totaled over $150 million.
Within two weeks of opening the bids, Geary County Schools and Hutton Construction agreed to a base bid package of $113 million, $10 million below the CPI-adjusted bond value. The district is appreciative of the hard work the Hutton Construction team showed during the competitive bidding process.
Since then, the Board of Education, with the desire to deliver the best facility possible, continued to add competitive bid alternates as federal money became available. The final price of the facility, including infrastructure, alternates, furnishings, permits, and fees, is approximately $130 million. Due to the fiscal discipline of the Board of Education, the bond debt exposure to taxpayers remains at $105 million, with the district holding $65 million in an escrow account to pay down the bond debt.
For inquiries, please contact Lindley Lund, Marketing and Media Specialist for Geary County Schools USD 475, at lindleylund@usd475.org.