Refinancing could save HCS more than $400,000

After hearing a presentation from a representative from RBC Capital Markets, the Hillsboro City Schools Board of Education voted to approve a resolution authorizing the district to proceed with potential refinancing of a 2001 bond issue ­ a move district representatives said could save taxpayers up to nearly half a million dollars. 

   During the board's regular meeting Wednesday, Kent Cashell, of RBC Capital Markets of Cincinnati, spoke about refunding opportunities for general obligation bonds. RBC will be the underwriter for the refunding bond sale.

   According to district treasurer Debbie Lawwell, "Just like a homeowner

can refinance their mortgage to take advantage of lower rates, a district can refinance their outstanding debt when interest rates move downward. This resolution allows the district to begin work on this refinancing transaction. This transaction will only be completed if there are sufficient savings on a total and net present value basis. This saving will be reflected in lower property tax rates to district residents over the life of the bond issue."

   Cashell told the board that there are certain criteria to consider when looking at refinancing, which included whether or not more than 3 percent could be saved. Cashell said that at the current rates, the district could stand to save more than 6 percent. 

   Lawwell said that a dollar figure on the potential savings depends on the rates when the issue is actually completed, which could be in as little as six weeks.

   Lawwell said that some preliminary figures show the district could save between $349,000 and $493,829. Cashell said that even though the district has passed a resolution, they can back out of the transaction up to the very last minute if there is not going to be a savings.

   "The 2001 bonds were originally issued (for the construction of the new schools) with an average interest rate of 4.84 percent and current market rates are substantially below this level," she said. 

   Because the action should lower the bond payment for the district, the lower rate will be reported to the county auditor.

   "There will be lower taxes as a result," Lawwell said. 

   Cashell said that through the process there was no way for the district to obtain cash savings, rather all savings would be passed back to the taxpayer. 

   "It's the right thing to do" he said. "It's a pure good government move: lowering taxes."

   Board members said that taxpayers should note that this is not extra dollars for the district, "it's (the taxpayers') money."

   In a separate matter, toward the end of the board voted to go into executive session to discuss negotiations and personnel. The board president asked Superintendent Rick Earley to be more specific regarding the the personnel matter and he indicated it was for "investigation of charges or a complaint against a public employee," with no action anticipated after the session.

   In other business, the board: 

   • Voted 5-0 to approve the insurance plan as recommended by the district¹s insurance committee. Lawwell said that the insurance plan is a 4-percent increase from last year. "Some districts saw a 15-20 percent increase," she said. "We were thrilled to have just the 4 percent."

   The plan is through United Health Care, which was the district¹s provider last year, she said. The insurance committee, which is comprised of two certified staff members, two classified staff members and two administrators, considered plans from many insurance companies, according to Lawwell. "Insurance is just really expensive. This was the best rate."

   The plan included: Single high option - $187.38; single low option - $128.26; employee and spouse high option - $399.12; employee and spouse low option - $274.20; employee and children high option - $361.64; employee and children low option - $247.50; family $698.38; family low option - $457.14. With a health savings account: single - $46.08 with a board contribution of $1,000; employee and spouse - $98.14, with a board contribution of $1,750; employee and children - $88.94, with a board contribution of $1,750; family - $144.68, with a board contribution of $1,750. Dental is $20 a month for single or family; and vision and life insurance is free to the employee. 

   • Voted 5-0 to approve the treasurer¹s report. Lawwell noted in the report that the cash balance is $4,092,599, compared to last year¹s balance of $5,526,093. Monthly expenditures were $1,730,469.

   • In separate agenda items, the board voted 5-0 to approve: food service prices for the school year; permanent improvement appropriations; depository agreements with National Bank and Trust and U.S. Bank; medical leave for two district employees; an FFA field trip to the National Convention in Indianapolis Oct. 20-23; reading volunteers from NCB Savings; an eighth grade trip to Washington, D.C. April 5-8, 2011; job description for the assistant cheerleading advisor; attendance requirement that students wishing to attend Laurel Oaks must have a minimum attendance rate of 95 percent for their freshman and sophomore years. 

   • Voted 5-0 to approve numerous individuals for employed positions, substitutes and volunteers contingent upon a satisfactory background check and proper certification. 

   • Voted 5-0 to accept the resignations of bus driver Buffie Chappius, cheerleading coach Becki Crum, and classroom aide Darci Miles. 

   • Voted 5-0 to pass a resolution waiving Body Mass Index screening for students in kindergarten, third grade, fifth grade and ninth grade. The provision is outlined in Senate Bill 210. 

   • Voted 5-0 to approve a contract with Clermont County Board of Developmental Disabilities for an area student to attend the Thomas A. Wildey School, for a total of $22,966; and a paid monthly rate of $2,552. Earley said that a child who lives within the district has certain needs that the district cannot meet, and this is the closest school that can meet those needs. He noted the agreement includes transportation. 

   • Voted 5-0 to approve an amendment of the current adopted tardy policy that is in the student handbook. Earley said that the new policy basically eliminates after-school detention and students must assist with custodial work.