The Pryor Times

Local News

April 22, 2014

Chouteau sets up bond trust

PRYOR, OK — Chouteau Trustees approved the establishment of a bond trust.

“We want to give you the opportunity to help the school district,” Chouteau Public Schools Financial Officer Tom Frazier said to the Chouteau City Council April 14.

“Establishing a Chouteau Educational Facilities Authority will help them with their recently passed bond issue.”

Frazier explained it would mean immediate construction funded in today's dollars rather than completing a building over the course of several years that, due to inflation, would cost more than the approved amount by the time it was finished.

“This is new to us. Mr. Frazier and his company do these all over the state,” said town attorney Ben Sherrer. “This model has been used recently by Locust Grove, Pryor and Adair schools in their recent bond issues, so it is not new to the county. Their preference is to set up a local education trust. I'm excited for Chouteau to have the opportunity to take part in a program like this.”

Establishing a trust authority to run the bond money through results in lowered interest rates, leveling of property taxes and faster construction for the school.

Chouteau town council will serve as the governing board for the trust authority but will have no duties other than hiring an auditor and approving the yearly audit.

The town council's involvement in this trust authority will have no bearing on the town as a public works authority, passing any future bonds.

 

1
Text Only | Photo Reprints
Local News