The Clinton Herald, Clinton, Iowa

Local Schools

October 5, 2012

Piecing together funding for Clinton Middle School

Firm presents several options to pay for new school

CLINTON — A two-hour special work session this week provided the Clinton School Board with in-depth information about how it can piece together funding to cover construction of a new $20 million middle school.

Matthew Gillaspie, senior vice president of PiperJaffray in Des Moines, presented the board with many different funding options to fill the gap between the $12 million the district has set aside for the construction and what it will actually cost.

The amount yet to be covered is predicted to come in around $8 million, said Clinton School District Chief Financial Officer Jan Culbertson

The $12 million already secured is coming from a $30 million bond sale in 2010, with that full amount divided up to pay for several projects as well as a portion of the new middle school, which when complete will house all of the district’s seventh- and eighth-graders. The plan is to move sixth-graders into the building after funding becomes available to build a sixth-grade wing.

With the assessed valuation of the properties within the school district coming in at $1.348 billion, and a 5 percent statutory debt limit, the district has a debt limit of $67.4 million. When all current outstanding bonds and notes are deducted, the school district would be allowed to take on no more than $34.4 million debt.

The board will have to consider four components when deciding whether to proceed with borrowing the money in either 2013 or 2014, those being statewide sales tax revenue predictions, fluctuating interest rates, enrollment figures that could decline or even increase, and possible changes to school finance law.

Gillaspie provided many scenarios, and guided the board through a run sheet that listed the district’s current debt obligations to show board members how the running cash balance would be affected over time. The board could have to face the possibility of operating with a negative cash balance for a three- to four-year time period, but has other funding mechanisms available, such as interfund borrowing, a bond anticipation note that would allow the board to borrow against future bond revenues, or subordinate bonding to get through that period, which could extend into 2018. The board also could bring a bond issue to voters requesting a property tax levy — which would have to be approved by 60 percent of voters — and then abate the taxes. The board then could pay for the as-yet unfunded portion with sales tax revenue and not collect it through property taxes.

Gillaspie said the goal is to build the school while at the same time protecting the district’s future finances.

“I don’t want you in a position that you can’t get out of,” he said, adding it is not good for the district, the kids or the community.

 The board will meet in a future work session to continue discussions on funding options.

1
Text Only
Local Schools
  • 3-28-14 1B-Signees 1 Four for signing day FULTON, Ill. -- Four seniors from Fulton High School will go on to play college athletics next fall, with all four of them staying within a 3-hour traveling distance. Only Matt Dail, who is going to Trinity Christian College in Illinois to play baske

    March 28, 2014 2 Photos

  • Schools eye same sports-sharing policy CLINTON -- Since 1982 the state of Iowa has allowed athletic sharing agreements between neighboring school districts and it is anticipated that the Clinton School District will continue to take advantage of that allowance into the 2014-2015 school ye

    March 25, 2014

  • 3-25-14 Clinton Middle School photo Projects shuffled as ground thaws CLINTON -- Progress is moving along at the Clinton Middle School, although contractors feel they may be teetering on the edge of their projected schedule. Unfavorable weather and a brutal winter have delayed some aspects of the project, which was ant

    March 25, 2014 2 Photos

  • PTK honorees Students inducted to Phi Theta Kappa CLINTON — The Alpha Theta Beta Chapter of Phi Theta Kappa recently held an induction ceremony for 30 students. Clinton Community College President Karen Vickers, EICC Chancellor Don Doucette and PTK advisors Gina Bielski, Jane Marlowe and Shirley Tur

    March 24, 2014 1 Photo

  • 3-24-14 AP Fulton Fulton eyes AP chemistry course FULTON, Ill. -- Next year, students at Fulton High School could have an opportunity to do something no Fulton Steamer has done before them -- take an advanced placement chemistry course. For the first time in River Bend history, the district is hopin

    March 24, 2014 1 Photo

  • Northeast pushes back technology staffing plan GOOSE LAKE -- The Northeast School District will delay moving forward with a proposal to create a technology position. During the Northeast Board of Education meeting Wednesday night, Superintendent Jim Cox suggested the district wait on transferring

    March 21, 2014

  • Tax rate to remain same GOOSE LAKE -- The Northeast School District has decide not to raise its published tax rate for the upcoming budget year. Business Manager Kristy Weiss presented the 2015 fiscal year budget to the Northeast Board of Education on Wednesday night. The p

    March 21, 2014

  • Schools plan new wrestling room at high school CAMANCHE-- Middle school and junior high school students involved in the Camanche wrestling program currently practice on the Camanche Middle School's stage, sharing space with a variety of other clubs and events. Now, a renovation project is being c

    March 21, 2014

  • Tax levy rate to decline

    Taxpayers in the Camanche School District will see a decrease in their tax rates for the 2014-2015 budget year. The school district is proposing a 62-cent decrease in its tax levy rate. District Business Director and Board of Education Sec

    March 20, 2014

  • Changes in technology use considered

    The Camanche School District is looking at changing how students use technology. As of April 8, Microsoft will stop supporting XP systems, no longer providing automatic fixes, updates and online technical assistance. Camanche Information T

    March 20, 2014

Facebook