C’view bd. hears about bond refinancing

DAVE MOSIER/independent editor

CONVOY — The Crestview Local Board of Education discussed bond refinancing and long-range planning during its November meeting on Thursday.

Board members heard a presentation on bond refinancing from David Conley, a consultant with Rockmill Financial Consulting, a Lancaster-based firm that provides a wide array of financial services to government entities.

Included in those services are financial management, budgeting, forecasting, asset utilization, facility financing, tax reduction strategies, long-range financial planning, and bond refinancing.

“We’re the only firm in Ohio that specializes in this set of skills,” he added.

Noting that he took an oath to provide services and advice that is in the best interest of his clients, Conley explained that, in the school district’s case, that means representing the taxpayer.

“So when I’m retained by you, you are in essence retaining me to represent the people in your community,” he said.

Conley, who has 28 years of financial planning experience and represents approximately 125 school districts among his clients, first talked about Crestview’s current financial condition, calling the district’s finances “superb”.

He noted that the district has the good fortune to have substantial utility revenues, coupled with excellent financial management.

“Those things, combined with the change in your taxation, your tax base, have produced a very good financial picture for this particular community,” Conley said, saying that was rare. “So far, you guys get an A-plus for financial management.”

Most of his time on Thursday was spent talking about the bond refinancing process, since Crestview’s board and administration are looking at the possibility of refinancing the district’s 2008 bond issue, which provided money for the district’s facility renovation and construction project.

Conley said his job would be to select a investment banking firm to sell the bonds — and make sure the cost is appropriate — as well as a financial analysis, lead the board through the bond rating process, and an underwriter to oversee the bond sales.

Although the original bond interest was 4 percent, which was really low at the time, Conley said current interest rates are even lower, which means refinancing the bonds could save the district money.

Although current rates have risen, due to the Brexit vote in Great Britain and the presidential election, Conley said the district wouldn’t necessarily have to finance immediately. Right now, interest rates are at 2.77 percent, which would save the district $492,000, or $402,000 in today’s dollars.

“It’s important to me to point out, for your residents, this isn’t a savings to the general fund, it’s a savings to the taxpayers,” he added. “It’s a direct reduction of taxes being collected on property.”

Conley explained that, with a new millage of 1.15 mills, taxpayers who own $100,000 homes would see their taxes reduced from $160 a year to $40 a year.

“This adds to an already impressive reduction of taxes for property,” he noted.

The board will review information provided by Conley and make a decision on whether to refinance the bond issue at a later meeting.

With the district’s good financial situation, Superintendent Mike Estes talked about a need for long-range strategic planning to address the need for additional space in the district.

Estes said the district needs more special education classrooms, while other programs, such as art and industrial arts, are being negatively affected by a lack of available instructors.

“At some point, we will need someone to assist us with long-range planning,” the superintendent noted.

Board members who attended the recent Ohio School Boards Association Capital Conference also talked about some of the information they received there.

Board Vice President Lonnie Nedderman noted that a learning session he attended talked about online classes and “e-schools”, and the importance of incorporating e-schools into a district to prevent funding from leaving the district, as well as provide more learning options for students.

“We can offer programs that aren’t currently available if we look into e-schools,” Nedderman said.

In other action, the board:

• Met Rosa Mueller Guthof, the district’s foreign exchange student from Germany.
• Accepted, with thanks, the following donations: $1,000 for the chorus department and chorus-band trip from an anonymous donor; $1,000 for the chorus-band trip from the Convoy Community Foundation; $100 from Eaton Corporation for the chorus department; and $200 from First Federal Savings & Loan in Van Wert for high school student incentives.
• Thanked district voters for approving passage of a renewal of the district’s permanent improvement levy.
• Approved a memorandum of understanding to establish a salary schedule for licensed-certified tutors, effective November 7.
• Extended a one-year contract to Matthew Holden as a high school tutor.
• Authorized the following supplemental contracts: Morgan Hicks, softball varsity assistant; Chad Pugh, junior varsity softball (60 percent); Becky Macki, junior varsity softball (40 percent); Lori Hammons, eighth grade softball coach; Kent McClure, seventh grade softball coach; John Rosebrock, varsity track assistant; Chelsea Oren and Connor Massillo, middle school track coaches.
• Approved the following volunteer coaches: Bob Perkins, varsity softball coach; Mike Hammons, eighth grade softball coach.
• Approved the Crestview Indoor Track Club/SWEAT as a school club for purposes of the Ohio High School Athletic Association.
• Authorized a trip by the varsity and junior varsity girls’ basketball teams to Mount Vernon on November 18, with Coach Mark Gregory.
• Approved support for Substitute House Bill 89 as presented.
• The next regularly scheduled meeting of the Crestview Local Board of Education will be at 7 p.m. Thursday, December 15.