Red Oak Schools Assess Future Capital Project Budgets | News
(Red Oak) – The Red Oak School District is starting to budget for future capital improvement projects.
Following its regular Monday evening meeting, the Red Oak School Board held a working session regarding its liaison capabilities and future plans. Piper Sandler CEO Matt Gillespie, who has previously worked with the district on financial matters, spoke to the board about the budget and the ability to fund future capital improvement projects. Following a recent $ 19.9 million bail approval in 2017 for renovations to the current High School / High School and Inman Elementary School, Superintendent Ron Lorenz told KMA News that the district is now somewhat limited in its bonding capacity.
“We are not really in a position to bond or borrow much over the next few years, we don’t have the ability to bond or borrow against future sales tax revenues of $ 0.01 up to in 2023, when our current obligations can be restructured, ”said Lorenz. “At this point, we can borrow up to $ 1.5 million for $ 0.01 in sales tax in the short term, and about $ 8 million over the next 20 years.”
Lorenz says Gillespie informed the board of directors that they could also approve general bond PPEL capital loan notes up to $ 3.4 million.
However, Lorenz says the district’s debt limit limits them considerably in the short term.
“We are very limited because we have a statutory debt limit, which is 5% of our total assessed assessment, which limits us to borrowing up to $ 3 million until June 30, 2022,” Lorenz said. “So we weren’t talking about immediate projects by any means, we just make sure we have a plan for the future.”
Lorenz says the budget discussion could affect plans for up to 15 years into the future.
“When I say move on, I’m talking about five, 10, 15 years old,” Lorenz explained. “And we want to make sure that we budget and manage our finances in a way that will allow us to undertake these capital projects if and when the time is right.”
In other business during the regular council meeting, the council approved an extension of an agreement with the Montgomery County Agricultural Society, approved a request for LEP excess costs of $ 21,912.46 and approved the hiring of Riley Brown as an agriculture teacher and FFA sponsor for the 2022. -23 school year, David Ross as a bus driver for the 2021-22 school year, and William Collins as a math teacher at the secondary school for the 2022-23 school year.