Peoria Public Schools are preparing to sell $50 million in bonds to pay for a mighty list of school facilities’ improvements.
The bonds will be paid for with the revenue from the 1/2-percent sales tax increase Peoria County voters approved in Nov. 8 election. PPS' School Board approved the underwriting agreement with Stifel Nicolaus and Company, on a 5-1 vote.
Chief Financial Officer Mick Willis says he recommended the company because the way it structures the bonds will be beneficial to the school district.
“We’ll walk away with $50-million and they structure it so they also cover their fee, which gives us more money to do construction with and that sort of thing. And that’s directly related to the quality of work that they do.”
The company’s underwriting fee on the bond issue will amount to $237,500.
Board member Dan Walther voted against it, on the concern the district didn’t have a cost comparison. But compared to the district’s last two bond sales, Stifel’s underwriting fee represents a savings of more than $137,000.
Stifel Nicolaus also provided the district with the financial expertise on the School Facilities Sales Tax Referendum.