Why it's needed
The District has asked D.A. Davidson to address whether Debt Service Fund money can be used to pay for a modular classroom and the response is as follows:
Money in the District’s Debt Service Fund must by legal Bond Resolution be used only for paying debt service on the Bonds and cannot be used for other operating or building purposes. The small reserve the District has in the Elementary District’s Debt Service Fund is therefore strictly allocated for principal and interest payments on the outstanding Bonds. Because the Elementary District has enough monies now with the $5,000 donation to pay in full the 2002 Bond at $135,000 that was to mature in 2022, the Board elected to use the available Debt Service Fund money to save remaining interest costs of $13,500 and pay the 2002 Bond in full.
Of further note, one more payment in the amount of $25,000 is due on the only other Bond of the Elementary District but the District does not have enough in the Debt Service Fund to make that final payment early and interest is only $750 so that final levy will be made as scheduled in 2019/20. Schools keep reserves in their funds as a best financial practice to mitigate any tax delinquencies or protests. At one time the State provided State aid for debt service funds in small amounts for eligible districts to help offset debt service levies but the State monies for debt service purposes have not been available for several years because of a prior legislative change in how State resources are allocated.
BRIDGET EKSTROM | Senior Vice President, Public Finance Banker
D.A. Davidson & Co.
Kindergarten classes displaced
During the first week of the 2018-2019 school year, the kindergarten building was condemned due to poor air quality. Kindergarten classes were cancelled for several days as the teachers and administration rushed to relocate the 3 kindergarten classrooms, as well as the music program, into the already crowded elementary building.
Many teachers are now required to conduct portions of their lessons in hallways, as well as transporting teaching materials on carts. Typically, classrooms are grouped together by location so that the teaching teams may rotate students for certain activities. With the kindergarten classes spaced so far apart, this has drastically impacted the lessons and activities available for these students.
The school currently has many public access points with poor to no visibility of outside visitors.
The classrooms throughout the school have very few electrical outlets, limiting the use of learning tools required. The heating system throughout the school is not functioning properly.
Currently, there is one small kitchen (located in the elementary building) that supplies breakfast/lunch to the 800+ students of the entire school. Students in 2nd grade through 5th grade are required to eat in their classrooms. Meals for the Junior High and High School must be transported manually to the multipurpose room in the high school building that is also used for sports practices and community meetings. This transferal process is incredibly difficult – especially through snow and during cold winter months. Supplies for the meal program are kept in storage and must be loaded into a vehicle, transferred to the kitchen, and unloaded, as needed.