Nevada County Picayune and Gurdon Times Newspaper Archive

Board discusses funding options

The Prescott School Board has approved a plan to extend the payoff of the districts bonds, thereby earning the district some cash needed for facility improvements. The plan requires voter approval before it can be completed and board members say the next step is to educate patrons about the plan.

The most important aspect of the proposal, according to Ray Beardsley of First Security Beardsley Public Finance, is that theres no request for voters to approve an additional millage.

The plan is to extend the districts existing bonds by nine years. The new payoff date will be in 2037.

The board asked voters to approve a millage increase in the 2006 school election. The increase was soundly defeated.

Beardsley said one question the board will likely face is why there was a request for a millage increase last year, but now theres a plan to raise money without an increase.

Prescott Superintendent Hyacinth Deon said the bonds werent eligible for the extension last year.

Beardsley presented the board members with four options during a special meeting called June 6. With little discussion, the board voted 4-0 to approved the option recommended by Deon. Board Member Jo Beth Glass was not at the meeting.

The option, as presented by Beardsley indicates that the bonds were issued in June 2003. The extension of the districts 10.1 debt mills sets a new payoff date at 2037. The option also calls for a refunding and construction bond issue. The total amount raised from the package is estimated at $730,000, though the board also plans to pay off a short-term loan taken out last year to pay for the 2006-07 facility improvements.

Prescott isnt alone in their quest to find ways to fund a district improvement plan. The state mandated inspected each school district several years ago and presented each with a list of improvements and renovations. Districts have the option to prioritize the items but must be making progress on the list. Districts that arent able to meet the mandates may be placed on the states facilities distress list.

Prescott School District took out a short-term loan in 2006 to pay for one set of projects. The plan being put before the voters calls for that note to be paid in full from the proceeds of the bond extension.

A representative of the Arkansas Department of Education told board members several months ago that districts across the state are facing the same funding issues. She said that districts that are making some progress wont likely face the in distress designation from the state.

Deon reminded the board during last weeks special meeting that a district in facilities distress will have state oversight on the budget. She said electives and activities will be cut to create more money for the facility improvements.

Thats not a discussion we want to have with anybody, Deon said.

The next step in the process is to formally approve the documents calling for the election. That meeting is slated for June 20 at 5:30 p.m. in the administration building.

The issue will be put to the vote during the September school election.