Financing in place for school improvement project

The final piece of the ongoing school renovation puzzle fell into place at the New Rockford-Sheyenne (NR-S) School District Board of Education meeting on May 14. The financing piece, that is.

Scott Wagner, the district’s bond attorney, presented a resolution to issue the general obligation bond funds approved by voters totaling $3.255 million. The resolution sets an irrevocable tax levy in mills sufficient to make annual principal and interest payments over a 20 year period, the maximum allowed by the North Dakota Century Code.

The bond proceeds will be paid to the Bank of North Dakota, the institution underwriting the loan. The state-owned bank approved the district’s request for financing with a fixed 2 percent interest rate. The total to be paid is $3.98 million, which includes up to $725,000 in interest over the course of the 20-year period. The actual interest amount will vary based on the draw schedule, according to Wagner.

In the last few weeks there was some confusion among board members in regards to the interest. Some thought that the $3.2 million performance contract with CTS Group included the interest. However, the interest is in addition, and paid annually as with any other loan. The district will pay approximately $199,000 per year towards the combined principal and interest. The resolution was approved.

Administration and staff have figured out a way to integrate social-emotional skills instruction to elementary students without hiring a counselor, as previously proposed. Superintendent Jill Louters reported that Pre-K teacher Lori Demester has agreed to facilitate social skills curriculum on Mondays, with topics such as role playing and conflict resolution. She will teach Pre-K on Tuesday thru Friday instead of Monday thru Thursday.

Louters has been named as a finalist for one of two open positions on the North Dakota State Board of Higher Education. Louters, Gregory Stites, of Bismarck; and Roscoe Streyle, of Minot, were chosen as possible successors to incumbent board member Kevin Melicher of Fargo. Louters was one of 10 who applied for the position in March. When asked by board member John Grann why she had applied, she replied, “This district wants a tighter link between K-12 and higher education.” She believes her appointment will help to create that liaison. Grann also asked how much time Louters expects to commit to the new role should she be chosen. Louters replied that there are two meetings per week, plus additional work to be done during the legislative session. The next session begins in January.

NR-S Senior Lauren Roscoe placed first in the interview competition at the state Future Business Leaders of America (FBLA) Conference last month, thus giving her the opportunity to represent North Dakota at the national FBLA Conference in Baltimore, Md., from June 26 to July 2. The board approved out-of-state travel for Roscoe and advisor Pat Rinde, for whom they approved $2,680 in in travel expenses.

Work continued on the 2018-19 budget as well. Louters and Heskin noted several changes they had made to the expense side in an effort to make it balance. However, with the projected decrease in state foundation aide (which is tied to enrollment), there is still a $60,000 deficit. This includes the salary for the newly-hired tech and engineering instructor. The materials needed for the program will be paid for with the district’s federal Perkins dollars, which are designated for Career and Technical Education classes. Louters said that they had crunched every number they could.

Grann inquired about federal impact aid, which is a federal program designed to provide assistance to local school districts that have lost property tax revenue due to the presence of tax-exempt Federal property, or that have experienced increased expenditures due to the enrollment of federally connected children, including Native American youth.

Louters replied, “I think it’s important to look at, absolutely.” Upon a motion from Grann, the board voted to have Louters and Heskin research the program this fall. 

Also budget-related, the negotiations committee made a recommendation to offer ancillary staff a 3 percent wage increase for the 2018-19 school year. Duda made a motion to have the matter be tabled due to the $60,000 projected deficit in the 2018-19 budget. The negotiations committee was tasked to review cost of living data and come back with alternative recommendations.

“Do we want to deficit spend, cut elsewhere or raise taxes?” asked Grann, noting that the board needs to come up with some suggestions or proposals on how to balance the budget.