Fayetteville Board of Education
Minutes of the March 11,
2003 Special Meeting
The meeting convened at 12:00 PM in the Adams Leadership Center with President Steve Percival presiding.
The roll was called and board members Laura Underwood, Howard Hamilton, Steve Percival, Malcolm McNair, Susan Heil and Christine Bell were present. Shannon McCuin was absent.
Dr. Bobby New, Superintendent, gave background information regarding the Lake View lawsuit and Amendment 74 and how they affect the Fayetteville School District.
Dr. Lisa Morstad, chief financial officer, discussed the benefits of using third party consultants to develop a long-term capital plan for the district. She then introduced Benjamin Rayer and Nicole Westerman from Public Financial Management. Mr. Rayer and Ms. Westerman presented a capital improvement plan development proposal for the district and answered questions from board members. The board requested that administration conduct a reference check on the company. Susan Heil made a motion to table the vote until the March 27th board meeting in order to give administration time to check references. Laura Underwood seconded the motion, which passed by a 6-0 vote.
Dr. Morstad reported to the board that Amendment 74 requires all school district in Arkansas have a minimum of 25 mills dedicated to maintenance and operation. Currently the Fayetteville School District has 20.3 mills dedicated to maintenance and operations, which leaves a 4.7 mill deficit. Dr. Morstad noted that while there are several options available, the most advantageous for the district would be to refinance bonds, transfer 4.7 mills from debt service to maintenance and operations and increase the millage by 1 mill. This action would result in compliance with Amendment 74 and additional revenue to finance new capital projects. The refinancing of four bonds would allow all the district to take advantage of attractive interest rates. This option would require a special election for voter approval. Howard Hamilton made a motion to approve the resolution calling for a May 13, 2003 special election and to approve the proposed budget of expenditures attached thereto. Christine Bell seconded the motion, which passed by a 6-0 vote.
Susan Heil made a motion to have the regularly scheduled March 27th board meeting. Laura Underwood seconded the motion, which passed by a 6-0 vote.
Howard Hamilton made a motion to adjourn. Laura Underwood seconded the motion, which passed by a 6-0 vote. The meeting was adjourned at 2:46 PM.
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Stephen M. Percival, President Christine Bell, Secretary