Cloverdale school seeks loan to fight shortfalls

CLOVERDALE -- The Cloverdale Community School Corporation Board of Directors approved a resolution which could allow the school to enter into a lease finance agreement to complete several capital projects.

The school is looking to borrow about $1.8 million dollars to complete the series of projects even though the school had been saving money for the projects.

"Due to the financial cuts that have been made recently by the Indiana General Assembly many school corporations, like Cloverdale schools, find themselves turning to lease financing to be able to complete some of the capital projects we need to have happening at the school corporation," Superintendent Greg Linton explained during the regular meeting Monday.

This resolution has a projected tax rate impact of roughly 5 to 6 cents. With a 10-year loan, for $100,000 of assessed value a property owner would see an increase of roughly $21.93 a year on a home or $130 per 100 acres. With a 20-year loan, the same assessed valuation would see an increase of $13.20 a year on a home or $78 per 100 acres of land.

The initial step to allow the lease financing agreement was for the building corporation to approve an amendment to the school's lease. The building corporation's attorney, John Zeiner, explained the building corporation owns the school facilities. The lease payments from the school are used to pay the bonds. The building corporation will be borrowing the funds for the capital projects.

The building corporation met before the regular board meeting Monday and approved the amendment to the lease.

"I would like to say, the board and myself as superintendent, we do not take going into additional debt lightly. This is something we have discussed at length at more than one meeting," Linton stressed.

"The general fund is supported by state funds at this point, and Cloverdale over the next two years will be losing $1.3 million in state funding. We had originally allowed some funds to build up to complete some of these projects, but over the next three to five years we are going to need that cash to pay salaries, pay the light bill, things like that."

The capital projects include:

* Repair and resurfacing all corporation parking at the cost of $700,000.

* Update HVAC equipment at the high school at the cost of $250,000.

* Upgrade the roof at the middle school at the cost of $170,000. Linton noted the roof is about 20 years old.

* Upgrade the gym PA system at the cost of $37,000.

* Upgrade the bus parking lot fences at the cost of $31,000. Linton noted this implement an eight-foot fence to replace the four-foot fence, as well as include gates. This will combat security breaches the school has faced.

* Finish the drainage project at the cost of $300,000. This includes drainage issues by the softball field and administration center parking lot.

* Resurface the track at the cost of $20,000.

* Resurface the high school gym floor at the cost of $16,000.

* Upgrade the security cameras at the press box and football field at the cost of $10,000.

* Replace old ventilation units at the elementary school with cabinets at the cost of $100,000. Linton noted the old units are allowing drafts, and filling these holes with insulation will help with heating and cooling.

The total estimated cost for the project is $1,634,000.

The board approved the resolution with a 4-1 vote. Board members Donna Fidler and Daniel Hofmann abstained from the vote. Chris Mann cast the dissenting vote.

"I would like to mention I'm going to be opposing this resolution tonight based upon the additional burden it's going to create for property taxes with the additional tax rate ... Some of these projects have to be done, but I'm concerned with how high our tax rate is," Mann said.

In other business, the board:

* Recognized the students of the month, fourth grader Andrea Nees, eighth grader Kaylyn Couch and junior Sadie McKinney.

* Approved a series of professional leave requests for Brent Sailor, Maggee Boyce, Katina Wetter and Deb Estep.

* Approved the retirement of Greg Crum as CHS biology teacher.

* Approved the resignation of CHS instructional assistant Alethea Mann and maintenance/job coach Chris Elsbrock.

* Approved the hire of Rusty Bottomley as CHS band drum instructor for the summer program and Angela Raiser as CHS band guard instructor for the summer program. In addition, they voted to hire the following summer part-time employees, Holly Ford, Debbie Atwood, Lacie Wiggam and Dalton Atwood.