The Clintonville School District will save $332,859 after approving a resolution authorizing the issuance and awarding the sale of $4.66 million General Obligation Refunding Bonds. The board made the move at their meeting on Monday, March 24.
According to a report given by Carol Ann Wirth, president of Wisconsin Public Finance Professionals, LLC (WPFP) a report on refinancing 2002 bonds was presented to the school board on Jan. 27. The 2002 bonds were outstanding at an interest rate of 4.95 percent, and were not callable until March 1, 2016.
The district is utilizing a special form of refinancing called “advanced refunding”, whereby the callable portion of the 2002 bonds (principal and interest) will be escrowed and paid off with special U.S. Treasuries called “SLGS” until they can be called.
The board approved a resolution authorizing the issuance and awarding the sale of $4,665,000 General Obligation Refunding Bonds for the purpose of advance refunding the callable portion ($4,520,000 maturing 2017-2022) of the 2002 bonds.
WPFP, as financial advisor to the district, coordinated the financing team. WPFP prepared the district to access the municipal bond market with the completion and distribution of an official statement and application for a Moody’s bond rating. Moody’s rating committee reaffirmed the “A1” bond rating.
The final net inters rate for the bonds is 1.8169 percent. The future value savings is $332,859 to be realized in budget years 2014-15 through 2021-22 as a reduction in the Fund 39 debt service levy. The present value savings is $310,364 or 6.86 percent of refunded principal. These results are net of issuance expenses and debt service funds the district contributed.
Stephanie Hintz informed the board that eight middle school wrestlers have qualified for the state competition. “Our wrestlers competed six full months out of the year,” she said. “Many of them wrestle 50 or 60 matches per season. We have one of the largest female squads in the state.”
In other business, the board approved the following items:
• The hire of Clara Kopplinger to the position of Executive Secretary to the Superintendent;
• Increases in the CHS Rec Center membership fees. There will be a $5 increase for one-month memberships, and a $10 increase for three-month, six-month, and annual memberships. O’Toole said there have not been any fee increases in many years, noting that the increase would range from 1.5 to 3 cents per day. These increases will not take place until January 2015. “(The rates) are still very reasonable, bordering on cheap,” said Board President Dirk Weber.
• Early graduation requests of three students, class of 2015, providing that all graduation requirements are successfully completed;
• The 2014-15 CESA 8 Services agreement;
• The second reading of revisions to Policy 4212.5 – Lifeguards/Part-time Supervisors; and
• The first reading of revisions to Policy/Rule 3293 – District Fund Balance.
The board adjourned into closed session to discuss CEA and Support Staff Negotiations Strategy and personnel issues, but took no action upon returning to open session.