Board agrees to refinance district’s bonds
Members vote for five zones, two at-large positions in future elections
The Forrest City School Board on Thursday agreed to refinance bonds issued on Nov. 10, 2016 in an effort to save the district money.
Michael McBryde, with Stephens Inc., told board members the district could possibly almost $220,000 by refinancing the bonds at lower interest rates.
"If you recall, this is what we did last year," said McBryde. "Your 2015 is coming up to the point of refinancing it, just like we did with the 2015 bonds that became your 2020 bonds."
McBryde said that interest rates are at a low, but cautioned the board to keep in mind that interest rates fluctuate and that the savings projections could possibly change.
"What you would authorize tonight is the process to get started," said McBryde. "It does not require a vote, but does require approval from the Arkansas Division of Elementary and Secondary Education. Arkansas regulation requires each non-voted refunding bond issue generate a minimum principal and interest savings of at least $100,000, or 5% of total principal and interest over the old bonds."
McBryde said the board would need to pass a resolution to refund outstanding bonds in order to produce debt service savings to begin the process that involves several additional steps, including publication in the local newspaper and seeking bids on the bonds.
“After that, say if we get to the point of putting out the offering document, open bids and interest level isn't found acceptable, then reject bids and the school district is only out what it costs to publish it in the local newspaper," McBryde said of costs to start the process.
School board members Larry Devasier and Annie Norman asked about locking in interest rates and the current bond rate.
McBryde said the interest rates would be locked after the board votes to make the bonds available for sale by November and closed by December, at which point the rates would be locked in.
"Are we at 2.5% now?" asked Norman.
"Yes, but we are estimating 1.4%," said McBryde. "And, remember, if it doesn't make economic sense to do this, you can reject it when it comes time to."
The board unanimously passed the resolution to start the process.
In other business, board members discussed legislation and redistricting regarding school boards.
"The school board has to make some decisions on our options and how we move forward," said FCSD Superintendent Dr. Tiffany Hardrick. "Currently, all of our positions are at-large. We will have to be moving to zones by the next election cycle."
Hardrick said the board has several options when it comes to the elections.
"The board has to adopt a resolution to authorize members being elected by zone," said Hardrick. "With either five or seven zones, or with five zones and two at-large positions."
Norman voiced her displeasure with the legislation, but said out of the choices offered, she prefers five zones with two at-large positions.
Devasier said he would rather see the proposed zones for the seven zones before making a decision.
"We have to do the opposite of that," said Hardrick. "The board would have the final approval of the zoning maps afterward, but we have to make a choice on which they would want first."
The information will be reviewed and approved by the county election commission and the approved zoning plan must be provided to the county clerk.
"One of the benefits of the five zones with two at-large, in a small community that has been shared with me is, sometimes you have incumbents who live in the same zones," said Hardrick. "This way, you still have those with the opportunity to run again."
When put to vote, the board voted for five zones with two atlarge positions.
Hardrick also provided information and timeline projections for several construction projects.
She told the board that the parking lots rehabilitation and restoration projects are projected, weather pending, to begin by the beginning of next school year.
Hardrick also said that code compliance reviews are being done on building additions at Central and Stewart due to code changes that occurred prior to the previous blueprints being developed.
"The goal is to have completion of both of those buildings turned over by the beginning of the next school year," said Hardrick.
She also told the board that the district is expecting air conditioning units for Mustang Arena to be delivered in December.
"Then, we will be working around classes and things happening in that area," said Hardrick. “By the next summer months, that project should be completed as well."
She said that the new industrial arts building is also projected to be completed by spring.
"We are also working on the lettering for the renaming of the arena to the Coach Dwight Lofton Arena," said Hardrick, who added the goal is to do an unveiling of the new lettering on the building during Rumble on the Ridge. "We are working on some additional work such as lighting and other additional things such as that."
Hardrick also said the district’s personal policy committee is close to reorganizing and she hopes to have information from them prior to the holidays on possible bonuses for employees.
"We will give the best option we can afford," said Hardrick.
Norman asked about the district’s current Covid case numbers, to which Zrano Bowles said the numbers have been very low.
The board also approved the purchase of reading curriculums from Lexia Learning and TeachTown for the district as well as the purchase of several Cyber Stereo headsets for virtual learning students from Asset Genie.
In other business, the board approved three new hires, which included Doretha James, Shanell Goodman and Tunion Newborn for a long-term sub at the FCJHS, an ABC School aide and a bus driver, respectively.