Nevada County Picayune and Gurdon Times Newspaper Archive

More Debt Ahead For Gurdon Schools

Between trying to hurry the Gurdon Primary School renovations in time for school to start and the track at the new stadium, the Gurdon School Board, meeting in special session, voted to go into debt again.

With the State of Arkansas picking up 20 percent of the cost of borrowing, the board decided to get the funds needed to finish the GPS and to the track at the new stadium, by issuing second lien bonds.

With five of the seven board members present and in agreement with superintendent Bobby Smithson, $300,000 worth of second lien bonds will be issued soon. David Smith of Stephens, Inc. will file the paperwork with the Arkansas Department of Education after a few requirements are met.

Smithson went over the options the board had to find revenue to cover the $175,000 that the building fund was over budget for GPS.

One of the options was to take the revenue out of the contingency fund. This would deplete the contingency fund, so Smithson recommended a second option to the board, which was the second lien bonds issuance.

Currently, the Cabe Middle School gym is the only second lien bonded debt held by the district.

"It's financially sound to borrow, I wouldn't steer you wrong." said Smithson, speaking to the board. "Our assessment is going to be up a million and a half next year (tax assessed valuation)."

However, this amount must be placed in the complicated school funding formula (36 mills multiplied by assessed valuation X 95 percent collection rate) and does not mean the district receives this amount.

The board also voted to formally accept the voted issue. It signed the forms that will follow through with the issuance of bonds in the amount of $310,000 which will mature over a 10 year period.

This will give the district the money to refund two revolving loans, fund building and equipping new school facilities and make additional improvements to existing facilities. The renovations at GPS have already spent $150,000 of this money.

Concerning the roof at GPS, Smithson is expecting the last of the trusses to be put up by the end of next week with a completion date set for the end of December. Currently, the Kindergarten and the majority of the school is now in the dry.'