SCHOOL DISTRICT PLANS TO BORROW AGAINST NEW BOND ISSUE
 

The Worthington City Schools Board of Education on Monday approved borrowing $15-million against the $37.5-million bond issue passed by voters in November.

The plan -- presented by financial consultant John Payne of Robert W. Baird & Co. Inc. -- recommends the district issue $10-million in notes in December and $5-million in notes January.

"This issue picks up money for the school district it wouldn't otherwise have," Payne said. "It will pick up an additional $50,000 for the district."

"The process is called arbitrage -- which is the process of borrowing money then making money on the money you borrowed," district treasurer Jonathan Boyd said. "We can save on the interest we pay and keep interest we earn. ...

"There's a science in this, which is why we sought out the advice of Mr. Payne and his company," he said.

Boyd emphasized that the district's spending plan for the funds has not changed.

"The spending amounts will be the same," Boyd said. "It's just when we borrow the money, it will be a little earlier."

Boyd said the $15-million will go toward new buses, building maintenance and some technology upgrades. The specifics will be presented to the board later, he said.

The notes will be paid off in May with money from the issuance of bonds.

"When people get money sooner than they expect, they start spending it," board member David Bressman said. "I want to make sure (members of the administration) understand (the spending plan is the same)."

Board member Marc Schare said the decision to take advantage of the earnings was not made without thought.

"I've asked hours and hours of questions about it," Schare said.

The "no-new-millage" bond issue will provide $37.5-million over five years for repairs, buses, computers and furnishings, district officials have said.

The issue is not increasing taxes, but permitting the district to issue bonds as current bonds are retired or refinanced. District officials have said millage will not exceed the 3.6 mills currently paid by taxpayers, but millage will not decrease as fast as it would have without approval of the issue.

Also on Monday night, the board:

* Discussed the departure of board member Gary Tyack. The district is accepting applications to fill his seat until Jan. 5.

* Heard Schare report on Ohio House Bill 431. If passed into law, it would establish a scholarship program for special education students. The special-needs students would use the scholarships to attend alternative public and nonpublic special education programs.

"I think this is a cause for concern -- the effect it's going to have on our budget and our kids," Schare said.

He said he asked Superintendent Melissa Conrath to do a cost analysis on the potential effects of the bill.

"So that we can go to the legislature," Schare said. "In general I want to start being a little bit proactive with the legislature, instead of sitting back watching what they do to us on a fairly regular basis."

* Heard Randy Katz say she is concerned that the school district calendar is infringing on family time.

She cited reducing the winter break from two weeks and three weekends to 13 total days this year, and a proposed 12 days for the next school year.

"This time infringement seems to be a common thread," she said. "Football starts four weeks before school starts. ..."

The board invited her to participate on the calendar committee.

This story ran on page 01A NEWS of ThisWeek, Worthington edition on 12/14/2006.