(Riverton, Wyo.) – The Central Wyoming College Board of Trustees during its regular meeting Wednesday night approved securing $5.6 million in bonds through Wells Fargo to fund several upcoming construction projects.
“What we’ve been doing is trying to find ways to get capital construction done and get our residential halls done,” Vice President for Administrative Services Ron Granger told the board.
He went over the details of the two separate bond sales with the board. He said essentially Wells Fargo buys the bonds and then sells them to their customers. The college will not be involved in that process.
The first set of bonds is $2.2 million for capital construction projects. These funds would be used to reconstruct the Pro-Tech Building for incorporating new programs into the building and to complete the remodel of the Classroom Wing, which was begun a couple summers ago. About $700,000 is planned to be set aside for construction of a new Lander center. President Jo Anne McFarland noted that these funds would be used as local matches for state funds that have already been allocated. The state pays 65 percent and the college 35 percent.
The $2.2 million will have an interest rate of about 2.3 percent and a repayment period of seven years. Granger said there is no penalty for early repayment. Annual payments are expected to be about $315,000 paid for by CWC’s optional 1 mill.
The other $3.4 million will be used for new residential facilities at the Sinks Canyon Center and a remodel of existing residential halls on the Riverton campus. These will be repaid over 20 years with an interest rate of about 3.15 percent. There is a penalty for early repayment in the first three years. Annual payments on these bonds are to be roughly $220,000 and will come from revenue generated by the residential halls. Actually proceeding with these bonds will be dependent upon bids for the projects. Bids for the residential hall projects are expected to be presented to the board during its June 19 regular meeting.
Granger and McFarland explained to the board that for the state matches, the college has to be able to show the state that it has the funds ready to go. While some of the projects could be paid for out of the college’s reserves, Granger said the bonds “allows us to keep that money in there for things that might happen.”
He also said that one of the benefits of using Wells Fargo is that on the capital construction projects, whatever the college doesn’t use goes back to the bank and CWC does not have to make payments on it.
Per questioning by the board, Granger said the bonds were not yet completely approved by Wells Fargo, but that they were waiting for board action before moving forward.
The vote to approving the bonding was unanimous. Trustees Colton Crane and Scott Phister were absent.