Jay looking to refinance

Jay Schools will move forward with refinancing about $13.8 million in debt related to the 2006 renovation project at Jay County High School. But the school board has not yet decided how to put to use the estimated $1.6 million in savings.
Board members emphasized Monday their focus is on reducing school corporation debt rather than taking on new projects. The school system has about $47 million in outstanding long-term debt.
“This 2006 bond issue was in the 4 percent range,” business manager Brad DeRome told the board. “It is now estimated that we can refinance this debt in the 2-percent range and save approximately $1.6 million over the remaining life of this debt issue.”
The 2006 project will be paid off by 2027.
“Obviously we’d like to retire debt,” board president Michael Masters said.
One of the options DeRome presented would use the savings to retire debt for one of the HVAC (heating, ventilation and cooling) energy savings projects. That obligation is currently being paid off via the capital projects fund but would be moved to the debt service fund after refinancing.
“We would like to free up capital projects fund money if we can,” said superintendent Tim Long.
Without settling on an option, the board authorized DeRome and school attorney Phil Frantz to move forward on the process, working with financial consultants George Baum and Co. and bond attorneys Krieg-Devault.
DeRome told the board the school corporation’s 2015 budget has been approved by the Department of Local Government Finance, which trimmed it from the advertised amount of $37 million to just over $35 million.
“The good news for the taxpayer is that the overall school tax rate dropped 13 cents compared to the prior year,” DeRome said.
That’s because of a $66 million jump in the county’s total assessed valuation. The 2015 school tax rate will be 99 cents per $100 assessed valuation, compared to $1.12 in 2014.
DeRome also said he’s monitoring the impact of House Enrolled Act 1062, which limits operating balances in the debt service fund.
“This may or may not be an issue as we look ahead to pay debt serviced payments from a cash balance standpoint in the first six months of 2016,” he said.
In other business, the board:
•Heard DeRome say Jay Schools is likely to have a $2 million cash balance at the end of the calendar year, about the same as last year. “That’s the goal,” he said.
•Honored outgoing school board member Larry Paxson, who served eight years on the board and had a long career as a teacher, principal and central office administrator for Jay Schools.
•Reviewed a number of policies to bring them into compliance with changes in state law.
•Authorized advertising for bids for a new three-quarter ton heavy duty pick-up 4x4 with a utility box bed. The truck replaces one that was a total loss in an accident in November. It is used by school bus mechanics.
•Learned from director of testing and assessment Trent Paxson that Jay Schools has been approved for a Title 1 grant of just over $1 million for elementary education based upon the number of students eligible for free and reduced lunches.
•Learned Pennville Elementary School will receive a grant of $6,000 from the Indiana Department of Education as a “focus school” to help bring up the school’s letter grade.
•Hired Stacy Phelps and Sabrina Corwin as bus aides and Timothy Clegg as a long-term substitute business teacher at JCHS.
•Accepted the resignations of instructional assistants Adolfo Solis at JCHS and Tiffany Mathias at General Shanks Elementary School.
•Approved transferring instructional assistant Joni Ostrowski to East Jay Middle School and instructional assistant Danielle Newell to General Shanks.
•Approved leaves of absence for instructional assistant Helen Walter and JCHS business teacher Courtney Clay.
•Approved extracurricular assignments for Mitch Corwin as boys’ basketball coach at General Shanks, Cori Vormohr as assistant girls’ swim coach at JCHS and Erik Hammers and Curtis Little as sixth grade boys’ basketball coaches at West Jay Middle School.
•Accepted the extracurricular assignment resignations of Kyle Bischoff as seventh grade boys’ basketball coach at East Jay and Tiffany Mathias as assistant girls’ swimming coach at JCHS.
•Approved field trips by FFA members and art students.