Nevada County Picayune and Gurdon Times Newspaper Archive

Board calls for voter support

The Prescott School Board has approved a resolution calling for an election to issue some $6.4 million in bonds. The proposal calls for the district to pay off existing bonds and an existing loan and to resell bonds, extending the new payoff date by several years. The plan does not include a millage increase, but merely refinances the districts debt.

Board members have said its important for voters to realize that theres no increase in millage involved in the request.

The plan is to pay off existing bonds and a short-term loan, then to resell about $6.4 million in bonds in order to generate capital for facility improvements. In addition, the district will save some $200,000 on the interest of the short-term loan which will improve the immediate cash flow situation.

The issue has been discussed over the past several months as the board struggled to find funding sources for a series of state-mandated improvements. The list includes several projects that Prescott Superintendent Hyacinth Deon has said will likely never make the top of the list - such as paving parking lots.

The issue is the direct result of legislative actions requiring equal education opportunities for children in all school districts. The state conducted district-wide evaluation and presented a list of suggested improvements. The positive point for the district is that most projects are partially funded by the state. The downside is that Prescott is still in need of millions of dollars to complete everything on the list.

Districts are required to submit a list of planned improvements annually, and those lists may be altered to fit the changing needs of the district.

In the case of Prescott, the district recently put off the planned installation of fire alarms at McRae Middle School because of the cost of the project. The district took out a short-term loan to pay for the other improvements on last years plan. The MMS fire alarm project is back on the list, pending approval of the bond issue to raise the money needed.

A representative of the State Board of Education addressed the board recently and said there was little chance the district would be considered in facilities distress as long as there are efforts to make improvements.

The bond issue will be put before the voters during the September school elections. Voters will be asked to vote for or against the bond issue. If the measure passes, the bonds will be resold and the payoff date extended to generate some $550,000 to pay for improvements over the next three years.