Springdale board approves next steps to gain $90 million for schools development

SPRINGDALE -- The School Board on Tuesday approved issuing bonds to generate more than $90 million for school development projects.

The board voted 5-0 in support of the resolution at its monthly board meeting.

Board members Eddie Ramos and Kevin Ownbey were absent.

Robert W. Baird and Co. won the bid to sell the bonds for the district over five companies with the lowest average interest rate of 2.28%, said Kelly Hayes, deputy superintendent. The district's current average interest rate is 3.6%, he said.

"We were able to take advantage of the historically low interest rates," he said.

Voters approved extending the maturation date of the district's more than $265 million debt from 2041 to 2051 in May, Hayes said.

The extension of the millage will generate about $90 million to help pay for development projects at Springdale High School and Central and Southwest junior high schools, he said.

Planning for the projects has begun, Hayes said. Project timelines haven't been determined, he said, noting they would start as soon as possible.

The projects total more than $125 million, with $35 million committed from the state, administrators said. The district is responsible for about $90 million.

The district will use the $90 million generated by the bonds to pay for its portion of the projects, Hayes said.

A second issuing of bonds will occur in the spring, Hayes said. All of the district's new debt will be in place at that time, he said.

Generating the additional money toward the development projects is being done without a millage increase, Hayes said.

"We are doing this without asking our patrons to pay more in taxes," he said.

Hayes also updated the board on the district's planned expenditures for money from the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, and American Rescue Plan the district received toward pandemic recovery.

The district dedicated about $4.5 million of the first round of CARES Act money to areas such as education technology, building sanitation supplies and continuity of operations and employment, according to supporting documents.

Of the more than $17.8 million in the second round of CARES Act money, the district has invested about $4 million in the same areas, as well as addressing needs focusing on learning loss and summer and supplemental learning activities, according to supporting documents.

The district plans to use the about $13.8 million remaining from the second round of money in areas such as services for special populations, coordinating activities for school closings, facility repairs and improvements and improving air quality, according to supporting documents.

The district likewise has access to more than $40 million in American Rescue Plan money it plans to invest in many of the same areas as the first two rounds, according to supporting documents.

The board voted 5-0 in support of the expenditures.