ODENVILLE – The St. Clair County Board of Education during a special called meeteing Thursday approved leveraging public school funds for capital improvements and additions.
Chief Schools Financial Officer Laura Nance said the money comes in two payments.
“The first payment is about 80 percent, and it used to come in around February,” Nance said. “Now it comes in March. The last payment comes in around September.”
Nance said the interest rate on this bond issue is at about 3.1 percent.
With the action by the board Thursday, this bond issue will generate an estimated $4.4 million in capital revenue before the end of calendar year 2019.
The current debt (20-year bond issue the BOE has been paying on for 18 years) will be paid in fiscal year 2021.
For 2020 and 2021, the system’s debt payment will be about $616,000. This will include the prior leveraged amount of $315,000 and the new leveraged amount of $300,000. After 2021, the debt payment will include only the new leveraged amount.
The BOE’s top priority needs and concerns include safety door modification at Odenville Elementary School, the installation of safety door locks for classrooms countywide (particularly at the elementary levels) and fire system/intercom upgrades at various schools.
Those top priority needs are estimated to cost $98,000.
Superintendent Mike Howard said this will help some of the major life issues the school system has throughout the county.
BOE attorney John Rea said this is not new money, but rather an advancement from the state.
“It’s money you are going to get over the course of time,” Rea said. “It’s not a county debt at all. It’s just an advancement of the state money they will give you over the course of time, and they are just giving it to you now.”
Reach Gary Hanner at email@example.com.