Board votes to seek $3.1 million second-lien bond

GENTRY — The Gentry School Board, at its special meeting on Feb. 13, unanimously approved a resolution authorizing Stephens, Inc., as the school district’s fiscal agent, to file an application with the Arkansas Board of Education to issue second-lien bonds in the estimated amount of $3.1 million to help pay for school construction projects which have been approved by the Board, including the diesel lab and career education classroom facility currently under construction and the new classroom facility at the Gentry Intermediate School campus which should be started later this year after the district learns if it will receive partnership funding from the state.

According to Barrett, the additional money was needed because of the cost increase in materials and construction since the first cost estimates were done and presented to the Board.

Barrett told board members, “If we don’t get partnership funding for the diesel lab and the Inter- mediate School classroom project, we would be $2.7 million in the hole. If we do get it, we’ll be $1.5 million in the hole,” he said.

The additional $3.1 million will allow the school district to complete both the diesel lab and the work on the Intermediate School campus even if no funds are received from the Arkansas Division of Public Schools Academic Facilities and Transportation. If the money is received, the district could complete some of the other projects the board had approved, including electrical upgrades at the high school, upgrades to the agriculture building and upgrades in the auditorium.

No additional mills will be requested of voters if the $3.1 million bond is approved and issued. Repayment of the bond would come from money freed up following the pay off of another bond this spring.

According to Kevin Faught of Stephens, Inc., notice of the intent to issue the bonds will be published, with the bonds offered April 25 and the bond issue brought back to the board for final approval about May 15.