Chamois R-1 school board members last Wednesday heard a presentation from LJ Hart & Company President and Chief Financial Officer Tom Pisarkiewicz presented two options that the school district could use to finance future improvements or additions. 

One option would be a capital bond that would require voter approval with repayments coming out of the school district’s fund #3. A bond is restricted to 15% of the assessed value of the school district and the maximum length to finance the bond would be 20 years. 

“Bonds typically have cheap interest rates with the cost of borrowing for a school district is usually less than three percent,” Pisarkiewicz said. “Having said that, rates are going up.”

The other option would be to pursue a lease contract, which does not need an election if the repayments can fit the school district’s budget.

“The school board has the authority to enter into a lease at any time,” Pisarkiewicz said. “It only requires an election if you are seeking an operating increase.”

For the school to enter a lease contract the district would have to notify taxpayers by placing a notice in the local newspaper at least two different times and allow for hearings. Repayment would come out of the Capital Projects fund where local tax revenue and money from the Classroom Trust Fund could be transferred to cover part of the payments. Another advantage to the lease contract is that the money would go through a trustee bank, which would then pay the contractors from that fund making the project less complicated for the school from an accounting standpoint. The lease bond has a slightly higher interest rate. 

Pisarkiewicz and his associate, Senior Financial Analyst Erin McManus, laid out a repayment plan for the district. 

If the school took out a lease contract option for $1.5 million with a 15-year maturity, the principal payment would be $135,000 annually with a 3% interest rate and a total cost of issuance of about $55,452. If the school district opted for a lease contract of $2 million with a 15-year maturity and a 3% interest rate the principal payment would be $175,000 annually with a similar cost of issuance.

Pisarkiewicz and McManus also outlined different scenarios in which the school district would make a large payment using funds from the Elementary and Secondary School Emergency Relief (ESSER) Fund, which would reduce the annual principal payment. All the options outlined would also have a five-year call option to repay early without penalty. 

Superintendent Lyle Best estimated the district could see anywhere between $300,000 to $400,000 in ESSER funding but that money has not yet been appropriated by the state of Missouri.

“They (ESSER funds) do have to be appropriated by the state by the end of March,” Best explained. “If not, it gets sent back. Missouri is the only state that has not appropriated these funds. I would hope that everyone could get their act together by the deadline.”

Pisarkiewicz noted that the next steps would be identifying which project the school district would like to proceed with and getting an estimate for the cost of that project, and then deciding which method of financing with which the school district feels most comfortable.

“The process of going through an election can be a hassle,” Pisarkiewicz said. “I don’t want to overstep my boundaries here but in thinking about the difference between a bond and a lease, if you go to the voters in August for a bond issue and they don’t approve it, then you are somewhat in a bind. It’s hard with the political backlash. If they say no to the bond issue and you still do it, you’ve got problems.”

“We may need to get community members involved and get feedback and hear their thoughts,” President Steve Cramer said.

“I’d kinda like to see what the community thinks,” board member Glenn Keilholz agreed. “I’d feel better if there was a bond issue and it was voted on. Then you would find out how people really feel.”

“I think Glenn’s point is probably correct,” fellow board member Kurt Kuschel said. “The only way you’re going to get an honest answer is to actually have people vote. I guess I was hoping that the ESSER money would cover a bigger chunk of the total cost. It stinks that we are picking such a high time to build as far as cost.”

“Maybe someday the cost would go down,” Keilholz suggested.

“But the interest rates point to now being the time to build,” board member Nick Schollmeyer said.

LJ Hart & Company is an underwriter and financial services company that helps school districts structure and find financing. The school district had worked with the company back in 2014 when the school district had sought a levy increase.

In other business, John Bernendzen of Porter, Bernendzen & Associates Architectural Firm also presented the finalized master plan and a priority list that was recommended by his company. The projects on the one-to-two-year list include asphalting the existing gravel drive (estimated cost of $180,000 to $200,000), refinishing the gym floor, reconnecting the solar panels, resurfacing the playground, updating the accessibility requirements for all the buildings, replacing the phone and intercom system, maintenance of vehicles and purchasing a bus.

The projects on the one-to-five year list include an addition that would enclose the space between the elementary and high school, creating accessibility to the entrance of the gym, new restrooms for the gym, updating the entrances, and including several new classrooms, offices, and reception area, and a commons area (this project would be about 5,300 square feet and cost an estimated $1.2 million), construction of a new outdoor track, asbestos abatement for the flooring in both buildings, installing air conditioning in the buildings, updating the classroom board, purchasing new playground equipment and regrading the east side of the elementary building wing.

The two projects that seem to have the most support from the school board members and administration are to pave the parking lots and the addition, both of which have been discussed by the school board over the last several months.

Bernendzen noted that the school board would first need to decide what projects they would like to move forward with and how these projects would be funded. Bernendzen and his company will be able to help the school board to meet with citizens and at local meetings to explain what is being planned and what is included.

“If you decide to move forward, we will help with promoting it for a bond issue,” Bernendzen said. “We’ll do promotional boards, PowerPoint presentations, and slides. We could draw up the exterior and do a kinda 3-D rendering and we would be willing to attend the meetings.”

Bernendzen also noted that if the board decided to move forward then they could go into more details on the floor plan and with what changes they would like to make.

“Once you give us the go-ahead, construction documents usually take about three to four months to get them turned around,” Bernendzen explained. “Construction would take from 10 to 12 months.” 

The school board will revisit these issues next month.

* Board members approved health insurance renewal for the school district and increased the board-paid benefit to $500 per month per employee. Currently, the board-approved benefit is $495. The additional cost will help to cover the 5.9% or $2,000 annual increase in the medical plan.  

The new plan increases access to providers by providing network coverage under Blue Preferred and the Blue Access network.

There were no cost changes to dental, vision, life insurance, disability premiums, or coverage.

* The board approved increasing the cost of tutoring to $20 per hour from the current rate of $14 per hour. Board members also voted to increase the current rate to teachers for covering another class during their planning hour from $10 to $15. 

* Best presented the school board with three calendar options for the upcoming school year. He warned board members that he has not had much time to discuss the proposed calendars with staff. 

— Option #1 is a mirror of this year’s calendar. The first day of school is Aug. 22 and the last day of school is May 9. Spring break would be a full week before Easter.

— Option #2 has the same beginning and end dates but splits the spring break to two days before and one day after Easter. It also allows for a longer winter break and a long weekend in March. 

— Option #3 puts the start of school on Aug. 22 but the last day of school is May 11. This proposed calendar again splits spring break to before and after Easter and allows additional days off to break up the long winter months.

Best plans to survey the staff to access their preferences and vote on the calendar at the next board meeting.

* Board members reviewed the school district’s Safe Return to In-Person Instruction and Continuity (SRCSP). 

“It’s pretty well agreed upon that since the state is not in a state of emergency the SRCSP does not have to be voted on at each meeting,” Best said. “But since this was the first full month after we made changes in December, we wanted to see if anyone had any questions.”

“We’ve had a ton of kids out but I would say 75 percent of them were from contacts at home or outside school,” Principal Jeremey McKague said. 

McKague noted that the cases in the elementary would not have been prevented by the masking requirements that had been in place. Currently, the school is not using the “test-to-stay” option because there are no tests available but they are adhering to a five-day restriction from school as recommended by the Osage County Health Department.

* The board approved expenses for the month totaling $44,030.95.

* Chamois had the following accounts balances: general fund ($1,911,552), special ($202,082), and capital projects ($147,886).

REPORTS

Best reviewed bills currently under discussion with the state legislature regarding school districts.

— Bill #1815 would allow for students to have open enrollment in whichever school district they would like. The bill is currently supported by the Department of Elementary and Secondary Education (DESE) and the Missouri School Board Association (MSBA). 

— Bill #1903 would extend virtual instructions options to students. 

“This new bill makes it so anyone that wants to take a class virtually can,” Best explained. “It takes the decision-making power away from the school district.”

— A Parents Bill of Rights would allow parents to challenge districts in what they teach and how they teach things. 

“If it goes through it could make it difficult to teach anything,’ Best said. 

— Bill #2046 would move school board elections to November and extend the terms of a school board member from three years to four.

— Bill #2493 would make available state matching funds for districts to develop a career ladder system for teachers. The bill would split the cost 60-40 between state and districts and would allow anyone who had been teaching for two years to participate.

— There is a bill that may change the definition of a school bus to provide districts move flexibility with transportation for students and several bills regarding special education.

— Best also mentioned that the governor has announced he is in support of raising the minimum teacher’s salary to $38,000 per year, with the state financially supporting the difference from the current salary with a 70-30 split. Best noted that there is no current bill being considered of which he is aware.

* Best told school board members that the heat exchanger that was cracked last February was determined to have the warranty voided because of the school district’s water. Chamois R-1 has filed a claim with the school insurance that is currently being processed. 

“We haven’t gotten the check yet, but we have notification that it is coming,” Best said. 

* Harold G. Butzer, Inc., has looked at the other boiler and determined that the heat exchanger on it is broken as well. Best has filed a claim with the insurance company for the heat exchanger on the second boiler. Currently, he is waiting on an estimate to finalize the claims process.

The school district has also reached out to four different contractors asking them to look at the setup for the heating system for the school and give the school district a proposal on how to make the heating consistent throughout the buildings. Best is hoping for the quotes to come in by the end of March so that the school board can review them and possibly have repairs begin on the heating system as soon as school lets out for the summer.

McKague announced that there are four students whose artwork is featured at the Missouri Art Education Association 2022 Capital Exhibit. Chamois Art Teacher Joyce Wright selected second-grader Braxton Uthe for his piece entitled “My Masterpiece,” fifth-grader Carly Schollmeyer for her piece “Eagle’s Resting Place,” eighth-grader Brooklyn Whited for “The Forest,” and freshman Rylee Davis for “Bridge of Flowers.” The artwork will be on display at the state capitol from March 3-21.

* On Feb. 1, the school held bike safety training for students in grades pre-K-2. McKague described it as a good experience for everyone involved.

* The school held a signs of suicide presentation on Feb. 11 for students in grades 7-12.

* On Feb. 18, six students will compete at the Future Business Leaders of America (FBLA) district competitions.

* McKague also announced that the local fire department board approved a junior deputy program for students over the age of 16. While the program doesn’t affect the school directly, it does require interested individuals to maintain good grades and attendance.

* On March 9, the Elementary Knowledge Bowl will return to the Lincoln University campus. The students have been practicing for the event.

* Graduation will be held on May 13.