Current interest rates have prompted the Centerville Community School District to begin the process of refinancing about $3.15 million in bonds.
A financial adviser from the district’s consulting firm of Piper Jaffray alerted district leaders to the potential savings of $160,000 or more if they moved forward with the refinancing.
The process will take until early December and will involve the SAVE bonds the district took in 2018.
SAVE, which stands for Secure an Advanced Vision for Education, is the program that delivers portions of the statewide 1-cent sales tax to schools. Districts commonly take out bonds or loans on future revenues through SAVE to fund infrastructure projects.
To begin the process, the board unanimously approved engagement letters with Piper Jaffray and Ahlers and Cooney for related services. The board also approved terms and information for bond bid solicitation.
The final related action was approving a resolution to set a public hearing for Oct. 14.
Centerville School Board President Marty Braster pointed out that while the district intends to refinance $3.15 million, the resolution allows for up to $3.75 million to be refinanced.
“Matt [Gillepsie, the district’s financial adviser] says it’s common practice to actually have the resolution be set at a higher level in case of anything that would occur that would cause us to have to issue bonds for more than the $3.15 [million],” Braster said. “There is no intent on doing that.”
Centerville Schools Superintendent Tom Rubel added that Monday’s action was not final, and wouldn’t be until the end of the process in December.
In other action:
• The school board approved a slew of change orders for the Lakeview Elementary School renovation project. The orders combine for a net increase of about $118,000. Many of the orders were for unknown items that came up during construction, though some items were an oversight. The district had set aside an additional $274,000 for contingency for the project. The new contract total with the change orders approved Monday is about $5.83 million.
• All personnel actions were approved. Tony Endress and Tyler Baze each resigned as assistant baseball coaches. There were no transfers. Contracts included Delsey Hinners as special education aide specific (current job, step increased due to degree), Cindy Flugge as district social worker (replacing Staci Freeman), Mary Jane Reed as special education aide specific (transfer from pre-kindergarten), Brooke Bailey as special education aide specific, and Jessica Kimm as special education aide specific.