No tax impact with new GO bond at South Putnam

Though continuing to look toward the future when it comes to improvements across the school corporation, stabilizing their financial impact within the tax base remains an overarching focus.

The South Putnam School heard a breakdown of that impact with the issuance on new general obligation (GO) bonds from Luke Bruggeman of Stifel Financial Corp., the corporation’s financial adviser, at its regular meeting Wednesday evening.

Though Bruggeman made the presentation, bond counsel Kristin McClellan from Ice Miller and Corporation Attorney Stacy Barclay of Sutherlin, Zeiner & Barclay were also in attendance.

A GO bond is one backed by an entity’s credit and taxing ability, rather than relying on potential revenue brought in by a given project.

Bruggeman first touched on South Putnam’s outstanding debt which is anticipated to alleviate after 2024. However, he focused mainly on its tax rate, which would be scheduled to drop by 15 cents without incurring bonds. However, the goal is to retain the 2021 rate of $1.32.

Bruggeman noted that the corporation was in a favorable position, as both the Operations Fund and Pension Fund would have no continual impact on the financials moving forward.

The coming $1.6 million GO bond can be paid back in two years from its issuance. Bruggeman related that this would “fill in” the tax rate but leave capacity for new projects to be completed. This is as debt will continue to fall off.

The estimated issuance cost stands at $75,000, with the rest of the bond available for both hard and soft construction expenses even with a conservative four-percent interest. Ultimately, there would be no impact on the tax rate.

With this, the board adopted a routine resolution for the corporation to reimburse itself with the bond’s proceeds once they are issued.

In other business:

• With no comments given for either, the board held public hearings for the 2023 budget and the collective bargaining agreement.

With the budget, Supt. Corey Smith noted that the debt service is to increase with the new GO bond issuances. With collective bargaining, representative Jill McCammack said informal discussions held in the meantime have been positive.

• Transportation Director Brad Ogborn announced that South Putnam’s bus routes and safety policies had been reviewed. He noted that signage had been requested from the county at new stops, as well as working with the Putnam County Sheriff’s Office on processing stop arm violations.

• The board approved to renew Karen Nelson Heavin’s work at South Putnam as a college and career readiness liaison. Heavin acts a third party to counselors, students and staff and sets up college and industry visits and assists with resumes, mock interviews and scholarships, among other services.

• With Smith noting adjustments were made with definitions and language, the board re-approved the teacher appreciation grant (TAG) policy. Smith emphasized that the core qualifications and compensation were the same.

• Though no details were provided about cost or their purpose, the board approved the purchase of equipment for the agriculture mechanics program at South Putnam High School.

• In including the TAG policy, the board approved a teacher evaluation plan for 2022-23. Smith noted that it was effectively unchanged except for language concerning evaluation of the superintendent.

• The board approved creating a position for a community partnership and development coordinator. The position is needed after South Putnam received a $126,500 grant from the state to focus on students building employability skill standards.

Recognizing her different capacities, the board as such tapped South Putnam Middle/High School Asst. Principal Tona Gardner to fill the position.

The board also recognized South Putnam’s Students of the Month in Sophie Priest (Central Elementary), Ella Smith (Fillmore Elementary), Addalyn Brinkman (South Putnam Middle School) and Jackson Hayman (South Putnam High School). Brinkman and Hayman could not attend.

The board also approved the following personnel report:

• Resignation: Bobbi Scioldo - MS/HS teacher;

• Maternity leave: Sydney McKee - Central Elementary teacher (Jan. 19-end of school year);

• Employment: Leighla Hazlett - Fillmore Elementary instructional assistant; Dustyn Feil - MS/HS custodian; Edward Curran, Jordan Simpson, Braylin Jobe, Les Brown and Kailey Barnard - MS/HS student custodians; Broc Leslie - assistant varsity football coach; and Grant Zimmerman - ninth-grade/assistant boys’ basketball coach; and

• ECA: Carrie Lovett - Math Bowl coach.

With Corporation Treasurer Hilarie Logan absent, Smith was joined by the entire board and Business Operations Coordinator Terri Beasley for the meeting.

The next regular meeting of the South Putnam School Board is set for Wednesday, Oct. 12 at 7 p.m. in the music room at Central Elementary.