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School board refinances bond

Published 11:00pm Monday, December 16, 2013

The Troy City School Board approved a resolution to refinance a bond that members say should save the school system a substantial amount of money Monday.

Randall Rushton, an Executive Vice President at the Frazer Lanier Company, helped the school system with the refinancing and explained how the restructuring would benefit the system. “What we are asking you to approve is a restructuring of a previous bond,” Rushton said. “You’ll save between $335,000 and $345,000 per year in additional funds. We now have better rates than we had when we originally structured the bond.”

Rushton also shared some good financial news with the board. “The system received an A+ financial rating from S&P, which is a very high investment grade,” Rushton said. “I’m not sure, but I think you are the highest rated school system of your size in Alabama.”

Superintendent Lee Hicks said the restructuring should be a boon to the school system. “It puts money back in the school system that can be applied to help the students and to fund some of our ongoing projects,” Hicks said. “Anytime we can improve the financial position of the school, that’s a good thing. The board has worked on this now for six months to a year. They have done a good job in getting this done.”

In other business Monday, the board:

• Approved the system’s monthly financial statements. Utility revenue saw a nine percent increase. Sales tax revenue increased by 8.2 percent.

• Approved the resignation of high school science teacher LaTanya Threadgill, effective Dec. 20, and head football coach Mike Dean, effective Jan. 31.

• Approved the hire of Elana Worth as a high school science teacher and Tiller Sikes and George Stone as general maintenance.

• Recognized Heather Templin, TES, Amanda Challancin, CHMS, and Sgt. Major Johnson, CHHS, as 2014-2015 Teachers of the Year. The three teachers were also nominated to the state Teacher of the Year competition.

• Heard a report on the state of the CHMS art program.

The school board next meets on Jan. 27 at 5:15 p.m.

  • Observer

    Lee Hicks and his board will be quick to pat themselves on the back and give themselves credit for the A+ bond rating. But they had little it anything to do with it. The bond rating is the result of years of stewardship on the part of previous boards and superintendents who spent money carefully and wisely and not just for cosmetic adornments. The restructuring and additional money for the system is a result of the Federal Reserve Board continuing to depress interest rates – the FED is benefiting debtors (such as the government of the United States) while its policies punish savers – passbook savings account interest at 1 percent or less.
    The extra $300,000 or so a year (not new money but a reduction in the interest payment schedule) will come in handy to off-set the debt incurred chasing a blue map to Tuscaloosa and to off-set the draining of the reserve fund that took previous administrations decades to build but the current administration only three years to deplete.

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    • oneblessedgirl

      It sounds like the city and the county have some “winners” when it comes to superintendents.

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