Nevada County Picayune and Gurdon Times Newspaper Archive

Strategies For Money From Bond Issue Discussed

Financial strategies for the money coming in from the recently passed bond issue were the topic of the day for the Prescott School Board.

In its regular monthly meeting, Tuesday, Nov. 16, the board was informed more than $3.25 million would be coming into the district from the sale of the bonds.

Superintendent Ron Wright said little thought was given as to what to do with the money once it is wired into the district's account when the issue passed.

He informed the panel the district is only allowed to earn so much interest from it by law.

The Bank of Prescott, where the money was wired to, sent the district a letter stating the funds have been collateralized to protect them under FDIC regulations.

According to the FDIC, accounts can contain up to $100,000 and be fully insured, but there are ways around this.

Wright said the Bank of Prescott has been generous to the district and its students on numerous occasions.

The bank also submitted a proposal to the district on how it could use the funds to earn interest while still getting all the work promised done.

Former board member Jim Franks told Wright the proposal should be checked out to make sure it was fair. This was done by both Wright and board president Rick McGough, with the two saying the bank's proposal is a good one.

Wright said it would be a good idea to put $500,000 in a six-month certificate of deposit (CD) and use the interest it earns to help tide the district over during the summer when no revenue comes in from the state.

Overall, he said, the district put $3.75 million into its accounts with the Bank of Prescott, with Wright saying he expects to get good rates of yield.

The board agreed with the idea of going with the bank's proposal, along with placing the half million in a CD for summer financial assistance.

Wright also told the board enrollment is pretty much holding steady at 1,088 students for the first quarter.

The board was told the district has been working on E-rates, a program similar to grants, including the need to apply, but only for technology-based programs.

Wright said districts trying to get E-rates must apply a year in advance, go ahead and do the work planned then be paid once it's completed and the district pays the bills.

Last year a new phone system for Prescott Middle School was done through E-rate, with PMS and Prescott Elementary being connected through computer networking.

The plan now, he said, is to have all three campuses networked together.

An E-rate has already been approved for the project, Wright told the board, in the amount of about $80,000.

The original idea had been to add two or three more T-1 lines for computers, but it was learned the district can install a T-3 phone line, with greater capacity, for less money.

The T-3, Wright said, would also be much faster than the T-1 lines, and with them being installed using fiberoptic lines, they can handle a greater capacity.

While the district is in good shape with its technology, he said, schools always have to be upgrading so they don't fall behind as advances are made.

The board also discussed what to do with its passenger van. The vehicle has 75,000 miles on it at this time.

Wright said in order to get much of a trade-in on it, the van would have to be traded-in soon, as the mileage is piling up because it is used almost daily.

McGough suggested moving the district's vehicle fleet down the line and using one for a driver's ed car. This way, he said, the older vehicles are removed from the fleet, when new ones are added.

Wright agreed it would be good for the district to offer driver's ed during the school year instead of just in the summer, as this program helps students get reduced rates on their insurance.

This idea will be studied and brought back before the board at a later date.

In other business, a student was suspended and sent to Garland School in Hope for the remainder of the semester after making threats toward Prescott High School Principal Steve Britton.

Britton recommended the student be expelled for the rest of the year, but this was reduced by Wright after talking with the student's parents.

The student in question must also undergo counseling before returning to the Prescott district next semester.

Wright gave an update on the renovation work being done, saying Steward Electric is working up specifications for heating and air conditioning for the district's buildings.

He said the bids are expected to run about $93,000 for each campus.

The price is high because some structural work will have to be done at some of the facilities, with this work having to be up to code and the heaters at PES vented and fully enclosed.

Finding a roofer for PHS, Wright said, has been a problem, as leaks threaten equipment when it rains.

Wright checked with the Arkansas Department of Education (ADE) concerning how bids can be obtained and was told they could be solicited instead of advertised.

This was done with three roofers being contacted. The board agreed to hire Hostetler Roofing to do the work at PHS as it did at PES toward the end of the spring semester.

Hostetler's bid was $32,279, with the company using the same type of materials it did on the PES roof.