The Pattonsburg R-2 Board of Education approved a refunding bond resolution which will save the school $120,934 during their regular meeting held on Nov. 16.
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The resolution authorized the sale of $905,000 General Obligation Refunding Bonds at an average interest rate of about 2.73 %, compared to the Series 2003 and Series 2004 Refunded Bonds which carry an average interest rate of about 4.40 %.
The district reduces the future interest expense by about $120,934 and shortens the final repayment period by five full years from the original Series 2004 Bonds.
Superintendent John Silkett expressed enthusiasm and support for the refunding option selected by the board. "This plan allows the district to pay off the existing debt five years earlier than originally planned without exceeding the 80.13 cent debt service fund levy of Fiscal Year 2006-07. It also preserves considerable flexibility in the future for no levy increase building proposals," Mr. Silkett remarked.
Board President Craig Lambert pointed out that the $120,934 of interest savings for the Series 2009 refunding is not all the district may realize due to the Series 2009 Refunding Bonds having a call feature in March 1, 2014 at no penalty.
"If interest rates are lower in 2014 or later, we can take advantage of that," he said. "Meanwhile we are locking in these levels that are about one and two-thirds percent (1.67 %) lower than they were in 2003 and 2004."
Dr. Roger D. Adamson, vice president with L. J. Hart & Company of St. Louis, explained the refunding proposal and how it can fit into the long range plans of the district. Dr. Adamson mentioned that the three significant factors making the Series 2009 refunding possible were the lower interest rates than in 2003 and 2004, the fact that the Series 2003 Bonds and Series 2004 Bonds are subject to prepayment on March 1, 2010 at no penalty, and the district’s ability to participate in Missouri’s Direct Deposit Program. This program makes it possible for the district to receive a "AA+" rating from Standard & Poor’s Corporation on the refunding bonds.
The Proceeds from the Series 2009 Refunding Bonds will prepay the callable Series 2003 Bonds and Series 2004 Bonds on March 1, 2010. The Series 2009 Refunding Bonds were purchased from the District by L.J. Hart & Company and the closing is to occur on Dec. 16, 2009.
In other business at Monday’s meeting, the board noted the purchase of 102 lockers, 20 stackable chairs, 27 desks, three teacher’s desks, a bell system and a couple of DVD/VCRS at an auction last weekend.
Pattonsburg received 13 points out of 14 points on APR. The school is working on improving its scores through its professional development program and by concentrating on its weak areas.
The school is working with Mo-Dot to come up with a safe way to protect the school and playground from traffic from the road after a recent accident that caused slight damage to a building.
Principal Hodge reported high school attendance was at 95% for October. Girls and boys basketball practice has started and there are 10 on each team. The Academic Team placed second in the HDC tournament.
The K-12 music program will be at 7 p.m. on Dec. 7. A pizza party will be held on Nov. 25 for MAP test performers who scored advanced and proficient this last Spring.
Due to the H1N1 virus and the outbreak of flu like symptoms, the school is revising the student handbook in regards to semester exams. Students who miss three or fewer days per semester for the 2009-2010 school year will not have to take finals if they are passing the course.
Principal Brady reported elementary attendance was at 97% for October. The bike-a-Thon was a huge success and brought in $1,362.50 for the elementary fund-raiser.
New staff shirts and student incentives to continue to promote a "culture of character" were purchased with the help of the Booster Club. The school looked into resources available to improve its EOC and MAP scores.
Filing dates for election of board members was set for Dec. 15, 2009, through Jan. 19, 2010.
Discussion was held on propane tank bids and it was decided to extend bids for the 10,000 gallon tank for another month.
The above are the unapproved minutes of the Pattonsburg R-2 Board of Education’s regular meeting held on Nov. 16.