As Waverly-Shell Rock Prepares To Pay Off College Debt, Officials Consider Next Bond Issuance | Education News
WAVERLY — With Waverly-Shell Rock Middle School’s debt nearly paid off, officials are looking to the next bond issue.
A pre-levy bond resolution for 2022-23 was approved by the Board of Education on Monday. According to board documents, Waverly-Shell Rock Community Schools plans to raise $1.69 million in the next fiscal year to finish paying off the college’s debt.
However, some of the money will not be needed for this debt. It will be set aside to help repay bonds issued after two new elementary schools opened this spring.
“Pre-draw bond resolution is something we’ve been doing for several years now,” Superintendent Ed Klamfoth said in an email. “This allows us to take the full amount approved by taxpayers and place the excess in escrow to be used to pay off debt sooner at some point.”
This total amount is a levy of $2.70 per $1,000 of taxable property value. It was approved by district voters in a 2009 general obligation bond referendum, providing up to $18.9 million to help fund the construction of the $22 million college. . This product was to be reimbursed over 20 years.
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But Klamfoth noted that excess money raised due to a growing tax base “played a role in our ability to pay college bail six years earlier.” This will be completed with the upcoming fiscal year, which ends June 30, 2023, and will save over $1 million in interest payments.
The advance payment means the $31 million bond issue approved by voters last year will maintain the existing levy without requiring a property tax increase. Along with the two new elementary schools, this will help fund upgrades to Shell Rock Elementary and High School.
Klamfoth said the pre-draw resolution could also be used in future years for additional prepayment of the 20-year bond on these projects. He noted that “we plan to do the same for our new elementary school debt if circumstances permit.”
In other matters, the board approved:
- The calendar for the 2022-23 school year. Classes will begin on August 23 and continue until May 26, 2023.
- A bid of $203,048 for two 2022 model year Blue Bird gas-powered buses. Two higher bids were received for diesel-powered buses. The proposed costs for these were $217,960 for two Thomas buses and $225,798 for two international buses.