Boyceville Board of Education approves refinancing $2.3 million in referendum debt

By Cara L. Dempski

BOYCEVILLE — The Boyceville school board unanimously approved a resolution to establish parameters for the sale of no more than $2.3 million in referendum-approved debt Monday evening.

The September 18 regular meeting led off with R.W. Baird financial advisor Justin Fischer’s presentation on current district debt, the current low interest rate environment, a hypothetical refinancing illustration, and a tentative timeline to take action.

The Fund 39 General Obligation Corporate Purpose Bond dated July 1, 2008, will become a callable maturity as of March 1, 2018. A callable bond is one the issuer – the organization providing the money – can redeem prior to the date of maturity. This often occurs when interest rates decline after the bond’s initial issue.

In the case of the $7,310,000 paid in July 2008, interest rates have lowered enough for Baird representatives to propose Boyceville refinance $2.3 million of the remaining debt to save money and capitalize on the lower interest rates.

The hypothetical refinancing illustration Fischer presented indicated the district could save approximately $109,697 on debt service.

The timeline indicated the documentation process for the bond sale, if approved, would take between 45 and 60 days, and the target sale date would be late October. The board approved a resolution for the sale and delegated authority for it to the board president and clerk.

The next step in the process is bond issuance, with the president and clerk awarding bonds to lock in interest rates in late October. The bond sale will be closed December 4, 2017, and the bonds will be paid off on the call date of March 1, 2018.

Other business

The board also heard reports from district administrators regarding the start of the school year. District Director of Special Education Bonnie Barker presented a short report on the number of students receiving special education services in Boyceville this year.

She said during the meeting she hoped the department would have fewer than the 127 students it served last year, but it appears the team has 128 to work with for 2017-2018. Barker and the special education staff are working with families to update individualized education programs as necessary.

District superintendent Kevin Sipple reported the annual meeting and budget hearing are scheduled for 6 p.m. October 9 in the middle/high school library, and the regular October board meeting is scheduled for October 23.

He also informed the board state legislators have not approved a final biennial budget. Sipple acknowledged the lack of a state budget has made preparation for the upcoming budget hearing and annual meeting – and the bond refinancing – more difficult.

The board learned the Department of Public Instruction informed Sipple of a private school operating within the district boundaries. Oak Grove Amish School has a Downing address, but is located near Connorsville. He told the board the district will need to work with the school for special education, transportation, and Title services as necessary.

The superintendent also warned there will be some additional reporting to DPI over time, given the school being located in the district.

During the meeting, the board also:

• Approved Hiring Scott Shelley as a full-time bus driver to replace Donna Weber.

• Approved hiring Julie Retz as a Title I paraprofessional, and Christina Mittlestadt and Angela Wyss as paraprofessionals.

• Approved hiring Tyla Langer as a part-time food service worker.

• Approved all currently-scheduled overnight or out-of-state field trips.