Nevada County Picayune and Gurdon Times Newspaper Archive

Smithson Authorized To Borrow Up To $300,000

Gurdon's School Board gave Gurdon Superintendent Bobby Smithson approval to borrow up to $300,000.

The money will, if needed, be used to help pay off some of the district's bills because of construction debts.

Smithson, in the regular monthly meeting of the board, held Tuesday, Dec. 21, said the work at Gurdon Primary School is coming along with all roofing panels in place.

But, he said, the roof lacks closure of these panels.

At this time plumbing is in most of the restrooms, with ceiling work completed in the kindergarten building.

Prep work is being done in the hallways at GPS, with demolition underway on one of the old restrooms. When this restroom has been destroyed, Smithson said, it will be converted into a workroom for teachers.

The old conference room, he said, will be used as an office for the guidance counselor.

"It will look good when it's done, but it's costing a lot of money," he said.

The original budget for the renovation work at GPS was $800,000, with the money to come from revenue generated from a 3 mill tax increase passed by the public in Nov. 1998.

This millage increase was also to be used to build a new football complex on Highway 67 with Gurdon High School and Cabe Middle School, along with a physical education building at CMS.

"I knew we couldn't build the football field for $500,000," Smithson told the board. It wound up costing $668,000 to build.

In addition, he said, the construction costs at GPS are more than $120,000 over budget, putting the district more than $300,000 over in anticipated building costs.

The district, he told the panel, has done several things to correct this, including working on grants from the Cabe Foundation.

The 1994 loans were refinanced for a better rate, bringing the district $49,000 in interest. Another $90,000 was transferred from the operating fund to help cover these costs.

"I knew it would take more than $800,000 for GPS," he said, "but I think the people can see what we've done. We haven't done anything not needed, but it costs a lot of money."

Revenue from the district's second lien bonds won't be in until the end of January. Because of this Smithson asked for, and was given, permission to borrow up to $300,000.

In Arkansas, he said, districts have a debt limit of 27 percent of their assessed evaluation. In Gurdon this is $12,515,000.

The district, though has a current indebtedness of $5 million with annual payments of $511,189.

When the building program began in '94, he said, a millage was passed. The state picked up 20.4 percent of this debt, with the district collecting $615,000 for the debt service.

Paying the bills, Smithson told the board, is a district's first obligation.

Fortunately, he said, the assessments in the district continue climbing, otherwise it wouldn't have been able to get any second lien bonds.

With the second lien bond money slated to come in at the end of January 2000, he said, any money the district borrows in the meantime can be done as short-term loans and repaid within 60 days.

In other business, the board approved taking out a revolving loan of $48,000 to pay for a new school bus.

Smithson said the new bus is actually in and has been paid for, but by going through the revolving loan program, this money could be used to help finish the track at Go-Devil Stadium.

Additionally, he said, the district is supposed to get $25,000 in transportation aid from the state and another $20,000 in local revenues. This will make more than $90,000 to help finish the track.

Otherwise, the board was told, it will be another year before the track will be completed.

The board was also informed changes have to be made to the uniform committee because the panel can't have administrators or teachers on it.

At the November meeting, the board discussed going to school uniforms and established a committee to look into the issue.

However, administrators and teachers were added, and under the state ruling, they aren't allowed.

Instead, they will be replaced by parents and members of the school board.

"We'll try to get a public meeting announced," Smithson said. "I've hears support for it from some students, but I don't want it to be a financial burden on the parents. We need to do what we can to help."

Each district in the state must address the school uniform issue as it is required by law. The Arkansas General Assembly passed a measure requiring all districts to exam school uniforms.

Those not checking into them will have the issue placed on a ballot and put before a vote of the people.

Also, if a district's school board suggests going to uniforms and the district doesn't it will again be placed on a ballot for public vote.

The board also talked about the district's crisis plan.

Smithson said one is in place, with copies sent to the Clark County Sheriff's Office and the Clark County Office of Emergency Services.

The plan has been followed, though it hasn't officially been adopted.

However, it doesn't include GPS, and, Smithson said, the primary school needs to be addressed in the plan.

The board officially adopted the crisis plan, which will be amended to address situations at GPS.