School District sees successful bond sale

Wednesday, Oct. 8, 2003 | 8:56 a.m.

An optimistic outlook for the future of Southern Nevada's economy helped the Clark County School District sell $400 million in general obligation building bonds Tuesday.

The proceeds from the bond sale will fund new school construction, as well as renovations and improvements to existing campuses.

The district will actually receive $29 million in premiums above the face value of the bonds because of its "AA" rating, Walt Rulffes, deputy superintendent of operations said. The interest rate is one of the most favorable the district has been able secure in several years, Rulffes said.

"This is very good news," Rulffes said. "It means our economy was judged as sound by the investors."

In evaluating the district, Fitch Ratings noted that construction and local service industry jobs continue to diversify the economy, although the primary source of revenue remains tourism and gaming.

Of the four bids received, Merrill Lynch offered the lowest interest rate and will handle the actual sale of the bonds, Rulffes said.

The bond sale was part of the district's $3.5 billion capital improvement plan, approved by voters in 1998. Each year the district sells about $400 million in bonds to fund the following year's construction.

The current bond program expires in 2008, and district officials have said they expect to go back to the voters in 2006 to seek additional funds for new school construction.