Mike Gallagher, a financial consultant with Ross Sinclaire and Associates, suggested that the district sell $35 million of the bonds this year and the other $15 million in 2011.
Gallagher said the district was the first in the state to apply for Build America Bonds, and saved about $4.2 million in interest.
The Build America Bonds were part of the American Recovery and Reinvestment Act of 2009, often referred to as the $787 billion stimulus plan.
Depending on the type of Build America Bonds issued, the U.S. Treasury gives either a bond holder a tax credit or an issuer direct subsidy interest payment equal to 35 percent of the amount of each interest payment due on the taxable bonds.
Anderson One officials chose to award the bonds as taxable direct payment Build America Bonds.
The interest rate was 3.82 percent, almost 1 percent lower than the 4.76 percent tax-exempt alternative.
The money the district uses for the school construction plan cannot be used to fund the school general operations cost.
Anderson One voters approved a referendum in 2008 to allow the school district to fund an $85.75 million school construction plan. Those funds are to be used strictly for the construction plan, and can’t be used for teacher salaries or other operations costs.
The majority of the construction plan funds, about $50 million, are being used to build a new Powdersville High School.
However, most other Anderson One schools are getting renovations or additions.
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