Starting over: Board has capital project financing discussion

     Taking its first step toward new school construction since the failed bond referendum of 2015, the Monticello School Board took part in a capital project financing discussion during its Wednesday, June 14 work session.

     Travis Squires, managing director of PiperJaffray, led a 90-minute discussion on options the board and district might have in financing a capital project.

     The main source of funding for any new construction would be the sale of General Obligation School Bonds, which would require a bond referendum and would need 60 percent voter approval.

     If passed, any tax levy would have to fit within levy constraints – currently the most that could be levied by the district for debt service would be $3.95 per $1,000 of taxable valuation.

     Another possible source of funding would be the Physical Plant and Equipment Levy (PPEL). Voters in the district approved a 10-year extension to the voter-approved portion of the PPEL in February, which will keep it in place until fiscal year 2028. However, the district currently uses those funds for building maintenance, transportation and technology; so Squires advised that even though it is legal to use some of the PPEL funding on a new capital project, it wouldn’t be wise.

     One of the variables the district may encounter is the statewide sales tax, which is scheduled to be in effect through the end of 2029, with no guarantee afterward. Which means the district would only be able to count on those funds to help pay down capital project debt for about 10 years, depending on what the state legislature decides to do with the sales tax.

     “We aren’t going to have any clarity on the (future of the) sales tax until the end of the next session,” Squires said.

     Another issue that could get in the way is the district’s current revenue purpose statement, Squires said. The district is able to borrow against sales tax revenue, but only through 2021, after which state law changes and the district’s use of those funds would be more restricted.

     “You would no longer have all your sales tax money to spend (on a capital project),” Squires said.

     The district can change that by holding a special election, prior to the end of 2021, which (if passed) would give it the authority to continue to borrow against the sales tax. Such an election would only require a simple majority.

     Also at the work session, the board held brief discussions on changes to the 2017-18 Panther Academy Parent Handbook, the Panther Academy Staff Handbook, the Support Staff Handbook, and the Administrative Staff Handbook.

     At a special meeting that preceded the work session, the board approved a list of personnel items that included:

     • the resignations of Christi Stingley as high school guidance counselor and Angela Bibb as middle school guidance counselor, Curt Tauke as middle school math teacher, Rachel Brindle as kindergarten teacher, and Nancy Miller as student council advisor.

     • the resignations of special education associates Tyler Felton and Sarah Kraus (high school), Zachary Schlictmann (Carpenter) and Shawna Giegerich (Shannon).

     • the resignations of Amber Thompson as assistant girls basketball coach, Allison Kelchen as freshman-sophomore volleyball coach, and Donnie Kremer as .33 strength and conditioning coach.

     • the appointments of substitute bus drivers Joe Cruise, Tanner Fellinger, Greg Jones and Ron Offerman.

     • the transfers of Robyn Ponder from sixth grade teacher to middle school at-risk coordinator, and Jolene Schlemme from first grade teacher to kindergarten teacher.

     • the termination of Sabrina LaBarge as special education associate at Shannon (due to change in student’s needs).