ES school district hires fiscal agent for high school project

EUREKA SPRINGS -- The Eureka Springs School District hasn't yet decided whether to renovate and expand the existing high school or build a new one -- an action that would necessitate an election if requiring a tax increase. But the school board now has in place financial advisors to help fund the project no matter which way it goes.

Thursday night the school board adopted a resolution to employ First Security Beardsley Public Finance as the fiscal agent for the new high school campus or high school addition. That came after a presentation from First Security that analyzed finances for the school from 2003 through 2010 and included an estimate on how many mills might be needed for an expansion or new school, depending on cost.

Scott Beardsley, senior vice president, First Security Beardsley Public Finance, said the law allows a school district one election per calendar year (in addition to elections for school board members). Only one question can be asked, and it must have a "yes" or "no" answer. The question must include the tax rate to support the proposal.

Whether a vote is held early or late in the year, it can't go into effect until the next calendar year. A minimum of 60 days is required between the time the school board votes to put a matter before the voters and the election. Beardsley, who works with school districts across the state on similar bond issues, said some districts want more than 60 days to make sure the public has plenty of time to consider the issue.

Beardsley said he or someone else from his office would be available to give presentations to local groups such as Rotary or retirees, and to a forum open to the whole community.

"Typically 12 to 20 people show up, mostly school employees and school board members with a couple from community," Beardsley said. "Some school boards want us to come in and others don't. Some boards feel a guy from out of town scares them."

Recession favors lower bids

One good piece of news is that because of the recession, the district likely could get good bids. Beardsley said similar school projects bid in the past nine months have come in five to 15 percent less than estimates.

Rusty Windle, chairman of the school board, said the district has just finished a study of the problems with the existing high school, and is now looking at options including what it would cost to renovate and/or expand the high school or build a new one.

The board learned that in order to expand the high school, it first needs the permission of Doug Eaton, director of academic facilities and transportation for the State Board of Education. That is true even though the state will not provide any funds for the construction project.

Beardsley explained that Eureka Springs is one of the best funded school districts in the state, one of about a half dozen districts with such a high total assessed value to student ratio that it receives no help from the state to build. He said that high assessment is largely due to the hotels and restaurants in town.

In contrast, some school districts have such a low assessment to pupil ratio that they only have to raise 20 percent of the cost of new facilities.

Space is critical

Beardsley recommended getting Eaton to take a look at the issue before moving forward because space at the campus is so limited.

"It will be clear cut what he will or will not approve," Beardsley said. "Just for time's sake, you need to check. It would save a lot of leg time for the architect."

The firm's estimates show that without any additional taxes, the district would have about $3 million for 20 years or $4 million for 30 years. One new mill would generate about $4.6 million for 20 years or $6.1 million for 30 years. Two new mills would generate $6.3 million for 20 years or $8.1 million for 30 years. Three new mills would create $8 million in revenue for 20 years, and $10 million for 20 years.

At a recent Historic District Commission meeting, a large number of people turned out who favor tearing down the old high school built in 1951. The structure is not energy efficient, and doesn't meet modern safety codes.

Other business

In other business, the board discussed the availability of $750,000 in federal stimulus money that possibly could be spent on the high school building. Funds must be expended by the end of 2011.

The school board also adopted a new student handbook, and heard a report on the district's special education program that serves 77 students. Carla Curtis, special education supervisor for the district, said the district's programs were monitored by the State Board of Education this past year, which is done routinely every few years. Eureka Springs did very well, and nothing significant was found that needed to be corrected.

Curtis said Eureka Springs has an unusual number of special ed students who are severely handicapped and need a lot of services. Additional funding is provided for special ed students considered catastrophic, and this past year the district applied for $377,000 in catastrophic reimbursement and expects to receive about half that amount.

The board also hired the following personnel for the 2009-2010 school year: Linda Basurto, high school math and alternative education teacher; James Rozell, elementary custodian position; Amanda Sharp, K-8 librarian; and Amy Rogers, special education para professional.