Board Report

Business Manager

September 1, 2009

 

Transportation

Theresa Bichsel-Cook will be at the board meeting to answer any questions regarding the supplemental plan.

 

Creswell Middle School

All issues have been resolved and everything is moving forward.  As the contractor stated recently—it looks like we might be seeing the finish line.  The trenches have been filled in the building and the flooring will be reinstalled prior to the start of school.  The parking lot is being paved and the field is under construction.  There will be some additional work on landscaping and finishing of the parking lot after the beginning of school but it will be minor. 

 

The plumbing will be tested when the students return but all involved believe it will work as designed.  I have my fingers crossed.

 

Here are updated bond balances:

          Funds Available                 $1,447,450

          Additional Revenue                 30,000             $1,477,450

 

          Project expense                $   714,000

          Fields                                   764,670            $1,478,670

 

          Balance                                                         $(     1,220)

 

I’m not sure the district could have been any closer!

 

Finance Committee

 

Dr. Robertson has called the next meeting of the finance committee for September 16.  The committee’s charge will be to implement board:

 

Goal 5:   To realign the district budget to support district goals, keeping student achievement as top priority

 

          Make student learning the priority of  our schools:

         Align all practices and procedures to promote student learning.

         Maximize and direct resources to support teaching and learning, in classrooms and extensions thereof.

 

 

Audit

 

The field work is done for the audit.  The final report will be forthcoming.  I am attaching the ending fund balance report which should conform to the audit unless any final adjustments are needed.  No issues arose during the audit process and I thank the fiscal staff for all the work that goes into getting the records ready and available for the audit.

 

 

 

BOARD AGENDA FACT SHEET

CRESWELL SCHOOL DISTRICT #40

Resolution 0910-8

 

MEETING DATE:         September 9, 2009     

DATE PREPARED:         September 1, 2009

AGENDA ITEM:            #16

AGENDA TITLE:           Quality School Construction Bonds

 

ITEM REQUESTED BY:  Jennifer Heiss, Business Manager

 

INFORMATION:

 

In August 2009 the district was notified of the possibility of obtaining quality school construction bonds and/or quality zone academy bonds.  Both bonds have a 15 year pay back with zero interest and both bonds would cost 5% for issuance fees.  The QZAB’s have an additional obligation of finding a sponsor that would match 10% of the bonds with cash or donations of goods.  The bonds would give the district an opportunity to identify and implement specific facility needs.  The payback would be $33,333 per year which would be funded out of district maintenance general fund.  

 

 

RECOMMENDATION:

 

It is recommended that the board authorize Quality School Construction Bonds in the amount of $500,000.

 

 

RESOLUTION:

 

RESOLUTION OF CRESWELL SCHOOL DISTRICT  (THE “DISTRICT”), STATING THAT REQUIREMENTS FOR THE USE OF QUALIFIED ZONE ACADEMY BONDS (QZABs), QUALIFIED SCHOOL CONSTRUCTION BONDS (QSCBs), AND TAX-EXEMPT FINANCING HAVE BEEN MET.

 

          WHEREAS, the District desires to finance the expenses of the project described on the attached Exhibit A (the “Project”);

 

          WHEREAS, capital expenditures for rehabilitation or repair of certain public school facilities may be financed with the proceeds of a Qualified Zone Academy Bond (“QZAB”) issued pursuant to Sections 54A and 54E of the Internal Revenue Code of 1986, as amended (the “Code”);

 

          WHEREAS, capital expenditures for construction, rehabilitation, or repair of a public school facility or for acquisition of land on which such facility is to be constructed may be financed with the proceeds of a Qualified School Construction Bond (“QSCB”) issued pursuant to Sections 54A and 54F of the Code; and

 

          WHEREAS, capital expenditures can generally be financed under Oregon law and in a manner such that the interest on the financing obligation is exempt under Section 103 of the Code;

 

          NOW,         THEREFORE, the Board of the District hereby finds, determines, declares, and resolves as follows:

 

          Section 1.  Recitals and Definitions.  All of the above recitals are true and correct and the Board of the District so finds and determines.

 

          Section 2.  QZAB Authorization.  The District is authorized to submit an application to the State of Oregon Department of Education seeking approval to issue a QZAB for those portions of the Project that meet the requirements of Sections 54A and 54E of the Code.  In support of such application, the Board of the District specifically finds, determines, declares and resolves as follows:

 

                             (a)    The District has reasonable expectations that at least 35% of the students attending or participating in the program will be eligible for free or reduced-cost lunches established under the Richard B. Nelson National School Lunch Act as of the date of issuance of the QZAB bonds.

 

                             (b)    The District has written commitments from private entity(ies) to make qualified contributions with a present value at the QZAB bond closing date of not less than 10% of the proceeds of the QZAB bond.

 

                             (c)    The school(s) (or academic program(s) with such school(s)) (the “Academy”) for which QZAB bond approval is sought is established by and operated under the supervision of the District, which is an eligible local education agency, as defined by Section 14101 of the Elementary and Secondary Education Act of 1965, in that the District provides education or training below the post secondary level, and (i) such Academy is designed in cooperation with business to enhance the academic curriculum, increase graduation and employment rates, and better prepare students for the rigors of college and the increasingly complex workforce, (ii) students in the Academy are subject to the same academic standards and assessments as other students educated by the eligible local education agency, and (iii) the comprehensive education plan of the school program is approved by the eligible local education agency.

 

                        (d)    The District intends to use the proceeds of the QZAB for one or all of the following:

       

                (1)    Rehabilitation or repairing the public school facility in which the academy is established; and/or

 

                (2)    Providing equipment for use at such academy.

 

        Section 3.  QSCB Authorization.  The District is authorized to submit an application to the State of OREGON Department of Education seeking approval to issue a QSCB for those portions of the Project that meet the requirements of Sections 54A and 54E of the Code.  In support of such application, the Board of the District specifically finds, determines, declares and resolves as follows:

 

                        (a)    The District intends to use the proceeds of the QSCB for one or all of the following:  Construction, rehabilitation, or repair of one or more public school facilities of the District.

 

          Section 4.  Davis-Bacon Act Certification.  All laborers and mechanics employed by contractors or subcontractors on projects funded by QZAB or QSCB proceeds shall be paid wages and fringe benefits at rates not less than those required under the Davis-Bacon Act, 40 U.S.C. 3141 et seq.

 

          Section 5.  Conflicts of Interest.  Applicable state and local law requirements governing conflicts of interest are and will be, at issuance of any QZAB or QSCB, satisfied, and if additional conflict of interest rules are imposed by Internal Revenue Service or other federal regulation, such additional rules will be satisfied with respect to such issuance.

 

          Section 6. Spending Plan.  The District has written spending plans for the use of QZAB and QSCB proceeds on file in its offices.

 

        Section 7. Intent to Reimburse Under the Code.  The District reasonably expects to reimburse capital expenditures described herein, costs of issuance or an expenditure described in Section 54A(d)(2)(D) of the Code with the proceeds of (1) a QZAB, (2) a QSCB, and/or (3) with tax-exempt financing under Section 103 of the Code (any of the foregoing is referred to herein as a “Reimbursement Bond”), and further declares as follows:

 

                        (a)    The reimbursed expenditures have been paid not more than 60 days prior to the date of this Resolution.

 

                        (b)    The maximum principal component of Reimbursement Bond expected to be issued is $500,000.

 

                        (c)    The expenditures with respect to which the District reasonably expects to be reimbursed from the proceeds of Reimbursement Bond are for the acquisition of the property and costs set forth in Exhibit A.

 

                        (d)    Except as provided in Section 7, the District shall allocate on its books the Reimbursement Bond proceeds to the expenditures described herein within 18 months after the later of the date the original expenditure is paid or the date the Project is placed in service but not more than three years after the original expenditure is paid.

 

                        (e)    The District agrees that it will not use any reimbursed funds to pay debt service or to pay previously financed expenditures.

 

 

APPROVED BY THE BOARD ON ____________________, ____

 

                                        ____________________ SCHOOL DISTRICT

 

 

                                        By:   _______________________

                                        Title: _______________________

 

Attest:

 

 

 

______________________________

Clerk

 


EXHIBIT A

 

PROJECT DESCRIPTION

 

 

The following portions of the Project qualify for QSCB and QZAB financing:

 

Description                                                         Amount

 

Lighting at Creswell Middle School Fields                          $  40,000

Softball and Baseball fields and synthetic turf fields           $350,000

Roofing on district buildings                                           $  45,000

Renovation of classroom spaces                                    $  15,000

Electrical wiring in older section of Creslane Elementary    $  25,000

Replace gym floor at Creswell High School                      $  25,000

 

Total                                                                         $500,000