Anticipating tough times ahead, the Steelville School Board is looking at ways it can save money now and in the years to come. During its regular December meeting held Monday at the Early Childhood Center, the board heard a proposal from a bonding company to refinance about $1.5 million in outstanding debt.
Joe Kinder, from the bonding company George K. Baum, of St. Louis and Kansas City, met with the board to discuss refinancing two major loans the district is currently paying off under lease-purchase agreements. The district currently owes about $1.5 million in lease-purchase payments, primarily from energy improvement contracting work that was done at the Elementary School several years ago.
“The goal of the refinancing would be to save about $40,000 over the life of the loans and consolidate them into one loan,” Superintendent Nathan Holder said. “It would also free up some money in the short term which would help our reserves, which are very low right now.”
Holder estimates the district could save $28,000 in payments this year if the debt was refinanced. Under the new financing plan, the district’s payments would be leveled at about $180,000 or the life of the bonds. If the debt is not refinanced, payments will steadily increase for the district, up to about $215,000 in coming years.
The big benefit for the school district in refinancing the debt will be that it will save money in Fund 1, which is the primary operating fund for the school. Money from that fund is transferred to Fund 4 each year to make the lease-purchase payments. Reducing the loan payments will help build up the district’s reserve in Fund 1.
The board did not make a decision on the bonding proposal during Monday’s meeting, but will review it for action in January.  That meeting will take place on January 11.
In other business the board:
• Heard a report from Holder on the status of the Fuels for Schools grant application. Six grants are expected to be awarded by the Missouri Department of Conservation in January. If the school receives the grant, which could be for as much as $970,000, the money would be used to convert the old middle school boiler system to a wood chip boiler.
• Reviewed an “accountability plan” designed to get the district moving forward with meeting all the requirements of the Missouri Department of Education’s Annual Performance Report.
The district failed to meet standards in four of 14 key areas in its latest review. The plan is designed to improve district MAP test scores in mathematics and make improvements in other areas, including ACT test scores.
• Nominated senior Lacey Sterling for the John T. Belcher Scholarship, which is presented annually by the Missouri School Boards Association. She will be competing for the award with seniors from 40 other regional schools.