Buyout time runs short (6/16/04)

BERNE — Time is running out for the South Adams School District to get involved in the state’s bond buyout program for retiring teachers.

This program would allow the school to borrow money needed by the district to fund retirement and severance liability for retired and retiring teachers.

School board members heard Tuesday from Doug Cassman of Educational Services Company, Indianapolis, that the corporation has until Dec. 31 to have the bonds issued by the state to the district.

The school has about $3 million in unfunded liability for retirement and severance payments. The bond money will be used for the buyout and set aside funds for future unfunded obligations.

Bond payments would be made with property tax revenues that otherwise would have gone for capital projects, and will not require an addition to the tax rate.

Asked by a board member about the timeline of reaching an agreement with the South Adams Classroom Teachers Association for the buyout, South Adams superintendent Connie Bailey said Tuesday that a letter was sent to the group in February and the union has not responded with dates the group can meet with the school board.

There was no decision made by board members Tuesday.

Cassman told the board that he doesn’t believe the Indiana Legislature will extend the deadline past the end of December.

To complete the buyout program by the December deadline, the teachers’ association and the school board will have to reach and approve an agreement on use of bond funds by early September.

In other business Tuesday, board member voted to continue making monthly payments on the approximately $150,000 of cardiovascular and weight training equipment provided to South Adams High School in August 2002.

“The equipment has been used a lot for school projects and by the public,” Bailey said.

The Utah-based National School Fitness Foundation said it would reimburse districts a portion of the cost each month by raising money from private donors and government grants that support fighting obesity.

In the agreement with South Adams, the foundation, located in American Fork, Utah, outfitted the high school and 600 other schools nationwide with cardiovascular machines and circuit strength training stations. In exchange, the school provides the foundation with student fitness data to be used in a national study. Along with the athletic equipment, the foundation provided a scale, a body fat counter, a blood pressure monitor, a computer and a fax machine to ensure the school would be able to keep track of and regularly send the data.

A complaint has been filed recently in U.S Bankruptcy Court of Utah claiming the foundation’s president used millions from the charity for his personal use. The foundation filed for bankruptcy reorganization on June 1, according to information from The Associated Press.

Of the 36 payments of approximately $4,000 each owed to South Adams, the foundation has made 21 payments, Bailey said Tuesday. Approximately $60,000 is owed on the equipment.

Board members were in favor of keeping the equipment and discussed paying off the remaining amount owed using money encumbered to the capital projects fund. The board also discussed if paying off the owed amount would void the foundation’s payment plan if the foundation were able to continue making payments in the future. The foundation failed to make its payment to the school in May and June.

Bailey said she would research the consequences of paying off the equipment and report her findings to the board at its July meeting.

Also Tuesday, the board accepted a $559,778 bid from Strahm Inc. of Fort Wayne for summer maintenance projects at the high school.

This bid includes installation of new flooring, walls, ceilings, countertops and doors in the administration and public areas, classrooms, media center, art room, home economics room and corridor.

The company is expected to complete the projects in September.

Strahm was the low bidder. Limberlost Construction of Geneva also submitted a bid on the project.

Also, board members:

•Approved a 1 percent salary increase for all non-certified, administrative and contracted employees for the 2004-05 school year.

This pay increase is the same percentage as the 2003-04 school year. Benefits also will remain the same.

•Approved a yearly request for school officials to apply for more than $1 million in grants from about 10 different organizations.

“(The grants) bring in more than $1 million to our student services and staff,” Bailey said. “It’s very important.”

•Accepted a $69,965 quote from LICA Construction of rural Berne to repave the overflow parking lot located on the south side of high school.

•Voted to hire Doug Beall of Berne as the high school girl’s basketball coach.

•Approved two-year contracts for building level administrators, contracted employees and basketball and football coaching staff. The board also approved a three-year contract for the superintendent.

•Approved the transfer of $210,315.40 to the general fund from the capital improvements fund and $81,230.91 to the transportation fund from the capital improvements fund.

This action, required by law, brings the totals in the general and transportation funds to $0.[[In-content Ad]]