ZACHARY — The Zachary Community School Board accepted Southwest Security Group’s low bid Thursday for the sale of $15 million in construction bonds.
The company will buy the 20-year bonds for an average 3.92 percent interest rate, and the money will be used to finance construction of a new school for first- and second-graders on School Board property between Rollins Place and Rollins Road.
“This is a very good rate. I am always happy to get under 4 percent,” said the board’s bond attorney, Jerry Osborne.
He added that interest rates are lower now than six months ago. Low-interest rates are financially beneficial for the School Board, which must pay interest on the bonds.
The highest interest rate bid among the four offers received was 4.16 percent.
Osborne said that as a result of the favorable rate, the board could accept an interest rate as high as 4.94 percent for the next bond sale without raising the 36-mill property tax in the school district that is used to repay the district’s bond debt.
The sale was the first from the $40 million in bonds approved by voters last November for various construction projects including the new school.
Earlier, the school system sold another $89 million in bonds for construction programs.
The new school will be near the Early Learning Center for pre-kindergarten students that opened in November.
First-graders now attend Northwestern Elementary School, which is scheduled to be renovated for kindergarten students. Second-graders now attend Zachary Elementary.