11/23/2012 11:34:00 AM District looks to borrow $1.5 million
by Ken Haggerty
The Cannon Falls School Board authorized its financial advisor, Ehlers & Associates, to prepare proposals for borrowing $1.5 million for a nine month period to meet its cash flow needs from January through September.
Other Districts who have recently completed aid anticipation borrowing have been able to do so at an average rate of .43 percent, said District Business Manager Josh Davisson. At that rate, the District's interest cost would be about $4,537, said Davisson. He estimates legal and financial advisor fees for the debt issuance would be another $8,000.
Davisson said because of the State's shift in the timing of funding, the District is receiving less cash in its general fund. The State is delaying a portion of the 2012-13 fiscal year (July to July) payments and won't get fully "caught up" until September, 2013. The State has made the move for a series of years now as a way to balance its annual budget. The District also borrowed money last year in anticipation of delayed payments.
The Board asked Davisson to see if the local banks are able to make a competitive offer on the debt.
Hire out for Bus Service?
Board chair Bob Brintnall asked that Davisson prepare some numbers to have the Board look at possible alternatives to the District operating its own bus service. Brintnall said if the District is going to continue running its own fleet, it will have to start looking at where to find money for replacing about six buses at about $80,000 a piece (the District has fifteen buses).
Board member Jerry Reinardy suggested the Board meet with someone from a similar District that has made the move to a contracted service to get an idea of the positives and negatives they encountered.
Davisson said that when looked at in past years, the District's per mile cost was below what a contracted service would do it for. Davisson also mentioned issues about flexibility and convenience of a self-run versus hired service.
Board members said any review of the bus service should also take into account the bus garage and any future capital costs associated with that facility.
Winter assistant coaches were approved. For dance, they are Jamie Swenning, varsity assistant; Carly Moore, junior varsity head coach; Leah Dockter, junior varsity assistant; Meghan Svien, dance assistant.
For boys basketball they are Tim Banks, junior varsity head coach; Anthony Flemmons, C-squad; Cruz Barrett, 8th grade; Tyler Quinlan, 7th grade.
For girls basketball they are Kathy Illa for junior varsity; Mike Gunderson for 7th grade; Amanda Rapp for 8th grade.
For wrestling, Kevin Landry will handle the JV and Matt Strain will work with the junior high.