FAYETTEVILLE — The Fayetteville School District caught a break when $31.4 million in Qualified School Construction Bonds were sold last week.
The district has four more years to repay the bonds instead of the 15 years anticipated. That means annual payments will be smaller because they will be spread over 19 years, rather than 15, and money in the bond repayment fund will earn more interest because the money will be there longer.
That was good news for the School Board on Thursday as board members unanimously ratified the sale of the bonds on Oct. 20 to Morgan Keegan and Co.
The interest free bond issue will be supported by a 2.75-mill increase in the property tax approved by voters in September. The money will allow construction of phase 2 of the Fayetteville High School transformation.
Lisa Morstad, chief financial officer, projected the district will earn an additional $1.5 million in interest while saving about $440,000 in cash flow because of the longer pay back period.
AT A GLANCE
Your Child’s Achievement
Parents and caretakers are invited to find out more about the Measures of Academic Performance reading and math assessment tests and how they benefit students.
When: 6 p.m. Monday
Where: Fayetteville Public Library
Facilitator: Sarah McKenzie, director of assessment, research and accountability
The assessment performed through the year in grades two through 10 to provide immediate results to teachers and principals. The results provide detailed information about each child’s progress.
McKenzie will discuss how the information is used to meet student needs.
Source: Staff Report
The Qualified School Construction Bond program is part of the federal stimulus package. The Internal Revenue Service sets the length of time for repayment of the bonds.
The initial approval the district received was for $53 million in low interest bonds, repayable in annual installments over 15 years. The second set of bonds for $31.4 million are interest free and the repayment schedule is spread over the 19 years.
The board welcomed two new members — Justin Eichmann from Zone 3 and Bryn Bagwell from Zone 2 — who were elected to the board in September and October, respectively. Eichmann ran unopposed for the seat formerly held by Tim Kring.
Bagwell defeated Jeanie Hill in a runoff to succeed Howard Hamilton on the school board.
Board members also re-elected Susan Heil as board president and Tim Hudson, vice president. Jim Halsell was elected board secretary and disbursement officer.
Board members acknowledged the election of Steve Percival to be the District 1 director for the Arkansas School Boards Association and appointed Bagwell as the district delegate to the school boards association meeting in Little Rock in December.
In other business, the board also approved a new tobacco use policy, limiting the use of all tobacco products in all buildings, facilities, grounds and properties, including athletic fields and parking lots under the district’s jurisdiction and at all school-sponsored or school-related events on or off campus.
Ginny Wiseman, associate superintendent for administrative services, said the new policy is more comprehensive. It was last revised in 2004, she said.