The St. Tammany School Board recently awarded the bid of $67 million in General Obligation School Bonds, Series 2008, to BB&T Capital Investments at a charge of 4.4 percent to the School Board.

The company was the lowest of four bidders. Other bids were received from Morgan Keegan, 4.41 percent; Citigroup Global Markets, 4.58 percent; and Merrill Lynch, 4.64 percent.

The excellent percentage rate is given to the school district because of its past credit and bond history. According to Standard & Poor’s, the rating for the school system has improved from AA- to AA based on the school system’s strong financial performance, large and diverse property base, very strong financial operations, general fund position and low overall net debt burden. S&P credit analyst Timothy Barrett said, “Good financial practices and policies lend additional stability to the rating.” St. Tammany voters approved the incurring of this bond debt in March. This first bond series will provide funding for technological and security improvements in schools throughout the parish as well as construction and renovation of schools in the parish.

Funds to repay the debt will come from several sources, including sales tax and property millage tax, said Brett Stoltz, director of business affairs. Bonds offered are tax-free bonds, meaning the investors that purchase the bonds do not have to pay income tax on the money they make.

The popular tax free bonds are desired by brokers because they are stable and offer investors a low risk of return on their investment.

Bonds will be issued in increments of $5,000.

Members of the public wishing to buy the bonds are encouraged to contact their broker for more information.