Chamois R-1 approves $1.75 million lease financing for HVAC system

By Theresa Brandt, UD Staff Writer
Posted 11/4/26

Chamois R-1 board members approved a Capital Facility Lease Finance Resolution for $1.75 million at their Oct. 14 meeting. Superintendent Lyle Best outlined a tentative schedule for the new heating, …

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Chamois R-1 approves $1.75 million lease financing for HVAC system

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Chamois R-1 board members approved a Capital Facility Lease Finance Resolution for $1.75 million at their Oct. 14 meeting. Superintendent Lyle Best outlined a tentative schedule for the new heating, ventilation, and air conditioning (HVAC) system planned with the financing. Advertising and bidding were expected to begin in late October or early November. Bid documents were scheduled to become available Nov. 9, with bids due Dec. 3. Board members could select a contractor at the December meeting, with work potentially taking place during summer 2027.

L. J. Hart and Company Senior Vice President Neil A. Branham explained that things have changed since the September meeting, with interest rates rising slightly. Branham noted that they have reached out to local banks hoping that they may be interested in purchasing non-rated bonds.

“We think it is going to be more beneficial to do a non-rated lease, and hopefully get those local banks to participate heavily in the purchase, and kinda drive those interest rates down,” Branham explained.

“I think it would be great to use our local banks,” Board President Steve Cramer said.

“Absolutely,” Branham said. “That would be the most friendly setup for the district.”

Branham said his company planned to issue a press release recognizing each local bank participating in the financing so those institutions would receive public exposure.

The proposed lease purchase had a tentative Nov. 10 issue date, with the first interest payment anticipated March 1, 2027. The schedule presented extended through March 1, 2043. The financing was described as a 17-year arrangement that would allow the district to retire the lease after five years without penalty. The first principal-payment date was not confirmed in the materials available for this article.

L. J. Hart and Company projected a conservative growth of 1.5% for the district. “It is growing faster than that, but we like to be conservative with our projections,” L. J. Hart Financial Analyst Connor Wood noted.

Wood said the company projected that district revenues would be sufficient to support the lease purchase and could allow the district to accumulate excess funds following the recent tax levy rollback.

“That money can be used for projects down the road, or it could be used to pay off the project early,” Branham said.

Branham expressed some concern about interest rates.

“Although rates don’t look as good as they did a month ago, probably, and I don’t have a crystal ball, but it’s likely going to be better than if they raise them twice in the next six months,” Branham said. He indicated that the financing rate was not expected to exceed 6.5%, compared with an approximately 5.14% rate discussed at the meeting. Final financing terms remain subject to market conditions.

Wood said the district would be responsible for filing an annual financial statement and that L. J. Hart and Company would help with that process.

Tom Brandt was the only district resident to attend the school board meeting, and he questioned why the public was not provided with all the financial information that was provided at the meeting before the meeting took place.

“Is the paperwork you have in front of you available to the public?” Brandt asked. “Do you post it so people can see it? It’s a public meeting, and that’s information we don’t have. So, I would ask if you were inviting the public, you need to provide information before the meeting.”

Board member Chuck Lamb said his understanding of Missouri law was that the materials must be made available upon request but were not required to be posted in advance. He added that board members were seeing the information as it was presented.

“In April the (tax levy) was on the ballot, and it was not approved,” Brandt continued. “Now, there is a $.75 capital fund levy until the year 2043. So, the board will continue the levy at $.75 to the capital fund for the next 17 years?”

Without waiting for a reply, Brandt reported that he had recently filled out a Facebook survey for the school district.

“Facebook is social media,” Brandt said. “It is not a method to communicate with your tax base. Not everyone is on Facebook. If you are intending, as the survey said, to involve the community, there needs to be a different method. I have yet to get one piece of mail from Osage County R-1 School District that explains anything or tells me anything. There needs to be some method other than Facebook for this district to inform the public about what is going on.”

Cramer noted that there were several postings throughout the city of Chamois, and at sporting events asking people to fill out the surveys. Students also took home surveys to their parents.

“There has been some outreach -- maybe not enough -- but we have tried to reach people outside of Facebook,” Cramer said.

“The Facebook thing seems to be something you rely on, and I’m not sure that’s the best way,” Brandt said. “You need to make sure everyone gets it.”

“Well nowadays, there are more people reading Facebook than the newspaper,” Lamb said. “That sounds terrible, and it is terrible, but it is what’s happening.”

“I don’t disagree with you on that,” Brandt said. “I do both.”

He continued to argue that he thought the information should be mailed to residents.

• In other business, school board members approved bus routes for the 2026-27 school year, with few changes from previous years. Three routes were approved.

-- The Morrison route travels down Hwy. 100 to Rt. J/N to County Road #244, and back again, for a total of 39 miles, with 17 students expected for this route. The snow route for the Morrison bus route will be blacktop roads only, and students from Morrison will be picked up at the junction of Third Street and Morrison Ave.

-- The Highway 89 route covers 37 miles and includes an expected 22 students. The bus will travel down Hwy. 89 North to Rt. FF to County Road #263, turn around, and take Rt. FF back to Hwy. 89 N, and from there, take County Road #314 to Hwy. 89 North back to Chamois. The bus will also travel through Chamois. The snow route will be blacktop roads only.

-- The Hwy. 100 Route will travel Hwy. 100 to County Road #435, go back to Hwy. 100 and to Rt. K to County Road #322 and take Rt. K back to the school. The route covers 20 miles and is expected to be ridden by 14 students. The snow route will travel the blacktop road only.

• Board members approved the policy changes presented for consideration at the September meeting, including House Bill 2061 (antisemitic discrimination and harassment), House Bill 1696 and Policy 1435 (residential camp background checks), House Bill 2292 (animal abuse and neglect reporting), Policy 1300 (prohibiting harassment, discrimination, and retaliation), Policy 2100 (nondiscrimination and student rights), Policy 4110 (equal opportunity employment), Policy 4630 (performance evaluations and staff conduct), Policy 4860 (staff welfare personnel records), and Policy 4875 (staff welfare animal abuse and reporting).

The measures were presented as mandatory except for House Bill 1696, which was described as highly recommended.

• Best reviewed the district's Facility Plan with board members, noting that nothing on the plan has changed for the last couple of years.

“We look at it annually to see if we have any new needs or if we need to add anything or change our priorities,” Best explained.

Items on the facility plan include flooring, asbestos abatement, HVAC, fencing for safety concerns, securing interior doors and vestibules, enclosing walkways, replacing the trailers, and adding new restrooms in the gym.

Best told the board that the list could be expanded and changed as needed and requested input from members.

“I’ve looked through this, and I think we have the same needs as we have had before,” Cramer said.

Best said the district’s solar panels were not currently generating electricity and, in his assessment, had never worked correctly. He expressed interest in removing them if that proves feasible.

• Best updated the board on the quarterly report on the current Comprehensive School Improvement Plan (CSIP), noting that staff members were working toward completing action steps.

“All the goals listed are to be achieved by 2029, so we haven’t achieved any of the goals yet,” Best explained. “But we have been going through and completing the action steps. We try to make sure there aren’t any areas that we aren’t focused on. At the same time, we can only do so much because we only have so many people. We try to keep things narrow enough that they are things we can actually accomplish.”

This information is available online and is updated quarterly.

• Board members approved outstanding bills for October totaling $55,335.69.

SUPERINTENDENT’S REPORT

Best noted there is some concern with the recent budget request made by the Department of Elementary and Secondary Education (DESE) for the upcoming fiscal year.

“They did not ask for the biggest amount that goes out to schools, like the foundation formula,” Best explained. "They elected to keep the request flat, the same amount that was appropriated this year, which left a $300 million shortfall for next year."

Best went on to explain that the foundation formula is based on legislation and is considered the amount necessary to fund education. Best noted that the governor or legislature has the right to appropriate the amount that fits into the state budget.

“This year, they took a different approach to go ahead and ask for an underfunded amount before the year is even started,” Best said. “There may be more appropriations added to it, but I don’t know if that is very likely. It’s a different approach.”

Best believes the committee looking at the foundation formula should be wrapping up its recommendations this winter.

He noted that with elections coming up, residents should take notice of where elected officials stand when it comes to public education and how to fund it.

• New scoreboards have been installed in the gym, Ameren Missouri has set a new electric pole behind the school, and the boiler has been repaired and is ready for winter.

“There has been quite a lot of work done to (the boilers) over the last month to get everything lined up where we hope we can make it through the winter,” Best said. “They have done a lot more investigating and looking than we have seen in the past, with hopefully a better solution for this winter. As of today, the boilers are ready to be operational and work. We can’t speak for two months from now, but for now, we’ve done what we can.”

PRINCIPAL'S REPORT

Principal Jeremy McKague reported that juniors and seniors have visited East Central Missouri College. There have been several demonstrations of healthy relationship seminars for junior high and high school students, who will be able to participate in a Build My Future program where they get hands-on experience with machines and learn about the construction industry.

Three Rivers Electric will host a lunch-and-learn on electrical safety, and Student Council planned to host a haunted house on Oct. 29 and a Fun Day on Oct. 30.

• McKague reported attendance of 95.8% for the elementary and high school levels, with no major discipline problems reported.