Nevada County Picayune and Gurdon Times Newspaper Archive

Smithson talks about restructuring school district's indebtedness

Gurdon Superintendent Bobby Smithson spoke to Gurdon's Rotary Club members on Thursday, March 6.

Smithson discussed the restructuring of the bonded indebtedness issue.

Smithson said, "According to Act 1300 of 1997 (amendment 74), requiring all school districts to have a minimum of 25 mills in maintenance and operations. The Arkansas Supreme Court ruled in the Lake View lawsuit that a school district could not use excess debt service millage to count toward the required 25 mills."

Smithson told Rotarians the school has four different options to choose from and will be holding a special school board meeting on March 10 at 7 o'clock in the Cabe Student Center to discuss the options.

"I hope we have a good turnout for the meeting. We have sent home letters to the primary school and middle school parents and we have advertised in the newspaper," said Smithson.

Smithson explained the different options. Option 1 is to ask voters to approve a 12.1 new maintenance and operation mills.

Option 2 is to ask voters to approve 2.2 new maintenance and operation mills, transfer 9.9 debt service mills to maintenance and operation and refinance three of the existing bond issues.

Option three is to ask voters to transfer 12.1 debt service mills to maintenance and operation and restructure three of the existing bond issues.

Option 4 is to ask voters to approve 12.1 debt service mills to maintenance and operation and restructure three of the existing bond issues to project funds. This would extend indebtedness by 12 more years.

Smithson said he did not think the board would go for option 1 due to the taxes already being high enough.

One school board member reportedly told Smithson Option 4 was pretty bold. However, Smithson said he feels this is the option for us and is looking at how it could benefit the school in the long run.

"If we go with Option 4 it will free up $900,000 that we can use for something else in the district. I can't think of anything right off hand, however we could use the money on our auditorium fund," he said.

Smithson encouraged everyone to talk to the school board members about the issues and to attend Monday night's meeting.