Second half of school bond sells

Carson City taxpayers will pay about $2 million less in interest on a school bond than originally estimated when it passed in the 2000 election.

"We're very pleased," said Bob Anderson, the district's director of financial services. "It went very well."

District officials sold the $18-million bond in two $9-million installments. The first sold last year at a 4.72 percent interest rate and the second sold this week at a 4.71 percent interest rate.

Bids were received Wednesday at the district office from eight regional and national firms. Offers ranged from Zion Bank Capital Markets' at 4.71 percent to 4.91 percent.

"We are very pleased with the number of bids we received and the interest rate we were able to get," said Superintendent Mary Pierczynski. "Our bonds are obviously high in demand."

She said the bonds received a triple A rating -- the highest possible -- through Moody's Investor Services.

The bond was passed to increase school safety and replace outdated systems. Work on bond projects began in March and will continue until school starts in the fall.

Marty Johnson, financial adviser to the school district, said the Federal Reserve has been lowering rates over the last year to "jump start" the economy and avoid a recession.

"We were able to take advantage of low interest rates last year and we are thrilled to have the opportunity again," Johnson said.

Money from the second portion of the bond sale will be available in February.