11/21/2012 3:13:00 PM Hayfield/Brownsdale School Board
Bond sale approved to cover shortage
By Tara Lindquist
The Hayfield School Board approved a resolution providing for the sale of General Obligation Aid Anticipation Certificates of Indebtedness during their meeting on Monday, November 12.
The sale of the bonds is needed due to the State of Minnesota withholding 36% of the money they get in state aide. "The state has done this for the past few years," Superintendent Ron Evjen explained to the board. "Around this time of year we run into cash flow problems and have to borrow money." The state does pay back the money by the time the certificates are due, on September 31 of the following year, but they do not pay the interest that is incurred. "We spend about 10,000 dollars each year in fees and interest; and that is money that we don't get back," Evjen said.
Evjen also reported that due to the district refinancing the bonds they borrowed to complete the 1998 addition to the school, the district is expecting to save taxpayers $220,000. He also said the district recently received their audit report and had a budget surplus of $124,000. The district opted to put $60,000 in a reserve fund to refurbish the track this coming spring, $24,000 to erase the deficit in the community education fund that was incurred due to preschool screening - which is mandated by the state but not funded by the state, and $34,000 was put in a fund for severance responsibilities.
Under the personnel agenda the board approved paying John Howe for the assistant coaching position he held during the football season. According to Evjen he had planned on just helping out and acting as a mentor until another assistant coach could be found but they did not find anyone to take the position during the season.
They also approved the hiring of Debra Wilson as the new Business Manager. Donna Wilson who holds the position currently will be retiring in January.
Other items on the agenda included the payment of the bills, the certification of the election results which elected Lisa Bungum, Craig Pesch, Kathy Hegna Zelinske and Christopher Ebling to the board.
The board will meet again on December 10th at 5:30 pm in the Hayfield High School Library; they will hold their Truth and Taxation meeting on December 3rd at 6 pm.