Little Falls School Board votes to authorize $6 million in aid anticipation
At Monday night’s meeting, the Little Falls School Board passed a resolution authorizing $6 million in aid anticipation borrowing.
Each school district budgets for state aid. Due to budget restraints at the state level, those funds will not be received in time to meet the necessary expenditures that money is earmarked for. Each district is allowed by state statute to borrow money by issuing aid anticipation certificates of indebtedness in an amount not greater than 75 percent of the total amount that is due for the school year.
Henderson said the full state aid package is scheduled be received prior to the end of the school year, or June 30, for the upcoming school year. This year, districts received 73 percent of the state aid when it was due. The other 27 percent will be available in the fall.
Little Falls School District Business Manager Nancy Henderson said the borrowing needs of the district for the upcoming school year are expected to be between $5 million and $8 million.
The District hired PMA Securities Inc., Albertville, as the independent financial adviser in connection with the sale of the aid anticipation certificates. The Board voted to proceed with the sale by direct negotiation with Northland Securities Inc., Minneapolis.
The principal amount of the certificates will not exceed $6 million and the interest paid will not exceed 3 percent per year.
The certificates will be dated Sept 24, and will mature Sept. 27, 2013. When the state aid is received, the aid anticipation funds will be paid back.
“I want to emphasize that the Little Falls District is not in the hole,” said Board Member Brad Laager. “We need the money to pay our bills and make payroll since the state aid is delayed.”
Little Falls School Board briefs
Other business conducted by the Little Falls School Board Monday night included:
• Meeting Larry Edgerton, the new principal of both Lincoln and Dr. S. G. Knight elementary schools, and Jay DeCann, the new Little Falls Community Middle School dean of students, activities coordinator and head football coach;
• Announcing Aaron Sinclair as the new human resources director. He will also continue as the activities director;
• Approving changes to the Flexible Benefit Plan document clarifying that contribution limits of $2,500 per plan year need not take effect until a plan starts a new plan year beginning in 2013;
• Voting to change the section of the open and closed meetings policy that concerns mediation services to read “The use of recording devices, stenographic records or other recording methods are prohibited in mediation meetings closed by the Bureau of Mediation Services;”
• Approving the annual review of policies concerning harassment and violence; reporting of child neglect or physical or sexual abuse; reporting of maltreatment of vulnerable adults; student discipline; bullying prohibition; student sex nondiscrimination; and Internet acceptable use and safety;
• Voting to accept the business office clerks’ wage agreement for 2011-2014. It includes a package increase for all clerks of $3,093 for 2011-12, $9,939 for 2012-13 and $5,370 for 2013-14. That translates to a three-year increase of 7.09 percent;
• Voting to accept the secretary/paraprofessional wage agreement for 2011-14. It includes a package increase of $7,893 for 2011-12, $132,414 for 2012-13 and $49,590 for 2013-14. The total three-year package has an increase of 8.33 percent;
• Voting to accept the food service employees’ wage agreement for 2011-14. It includes a package increase of $7,669 for 2011-12, $14,731 for 2012-13 and $9,073. The total three year package has an increase of 7.82 percent;
• Accepting the estimated health and safety expenditures for 2014, as mandated by state legislature. It includes inspections, testing, trainings and monitoring of all areas of the district for approximately $78,750;
• Setting the filing dates for school board positions from July 31 – Aug. 14, closing at 5 p.m. Affidavits of candidacy must be filed in the office of the school district clerk a the high school with a $2 fee. Each of the three positions up for re-election are for three years. Board members up for re-election are Jay Spillum, Robert Stoltman and Cathy Adamek;
• Voting to approve the change in the expenditures for asbestos removal from both the high school ceilings and under the high school library tile from a $45,000 estimate to $38,000 actual cost that came from a request for proposal; and
• Voting to hire Sarah Filippi as a language arts teacher at the Little Falls Community Middle School, to consent to the retirement of Dr. Maxine Strege, principal at Lincoln and Dr. S. G. Knight Elementary and to accept the resignations of Bonnie Hiemenz, bus driver; Jeff Flaten and Shawn Karnes, custodians; Tina Palmer, lunch account monitor and Jessica Adamski, Kids Kor-ner paraprofessional.
The next School Board meeting will be held at the Morrison County Government Center Monday, Aug. 20, at 5:30 p.m.