Fairfield school trustees authorized issuance of $9 million in construction bonds last week, completing financing of $21 million approved by voters in 2008 to build a new intermediate school and enlarge the high school.

The $21 million in bonds was split into two parts, of which an initial offering of $12 million was sold last year.

"By splitting up the bonds, we were able to get a good bit better interest rate on this series," Lewis Wilks of Coastal Securities says.

Interest rate on the $9 million is 3.7578 percent, compared to the 4.653 percent rate on the bonds sold last year.

Wilks reports that the issue approved last week has been assigned an "Aplus" rating by Standard and Poors, and that by buying insurance to guaranted repayment the rating would be upgraded to "AAA" and save the school district money.

Insurance cost $71,653 and will save Fairfield Independent School District about $300,000 in interest payments because it lowered the interest rate.

"Buyers now want to buy the best rated bonds," Wilks says. "The enhancement really helped."

The FISD bonds, both parts, are to be redeemed over 15 years from their date of issuance, a much shorter time than for most school and municipal bonds. Traditionally, bonds for construction are redeemed over 30 years.

Over the life of the total $21 million in bonds, FISD will pay out $49 million in interest and principal.

Voters approved the new issue on the basis that the interest and sinking fund tax rate would be about 19 cents per $100 assessed property valuation, but Wilks dropped that figure to 18.18 cents because of favorable interest rates.

FISD voters approved $12.5 million in bonds in 2000 to build a new elementary school, expecting a tax rate of 18 cents for repayment. Since then, another $46 million in bonds was approved for the gymnasium-media center expansion of the high school and the $21 million for the intermediate school and a second high school expansion project.

Because of a growing property tax base, largely attributable to natural gas exploration and production, the district is funding about $71 million in bonds for the tax rate originally estimated for $25 million.

Trustees unanimously approved issuance of the $9 million bond issue at a special called meeting last Tuesday, which went on sale that afternoon.

In other action, the school board approved a bid of $252 from RZ Land and Cattle Company to tear down a metal building on N. Texas 75 at the front of the intermediate school construction site—-RZ will pay the district to tear down the building for salvage.

Also bidding were Zack Newman of Fairfield, $150, and McLeod Construction of Fairfield, $0.

A resignation from Fairfield high school English teacher and coach Julie Biezenski, effective at the end of the school year, was accepted by the board.

Trustees also voted to continue employment of Sid Ivy on a part time basis in the transportation department.