School officials moving forward on borrowing
Published 8:00 pm Wednesday, January 23, 2013
With no formal objections filed, Brookhaven school board members are moving forward with plans to borrow $5 million for infrastructure updates and other district needs.
District Finance Director Susan Quin told board members Tuesday night no petition was filed requesting voter authorization of the borrowing.
Jan. 22 was the deadline for such a petition, signed by 20 percent of voters in the district, to be filed.
Without the need for an election to determine whether the board can borrow the money, board members authorized Quin to seek interest rate quotes for the loan.
“This is just shopping,” board president Karen Braden said of the process.
Once the most attractive interest rate is secured, board members can give the final OK and move to borrow the money.
“This is just the next step,” Quin told board members.
School officials say local residents won’t see an increase in taxes to pay for the loan. A tax levy funding a prior district shortfall is set to roll off but can be renewed to cover debt service for the impending loan.
Administrators have provisionally identified a number of key infrastructure needs borrowed funds would be used to correct.
“They have a preliminary plan but haven’t established priorities,” Quinn said.
District Maintenance Director Joe Morgan has emphasized the need for the district to comply with provisions of the Americans With Disabilities Act.
School sites throughout the district are in violation of the act, he said. For example, many bathrooms and water fountains aren’t in compliance with the act’s requirements.
Morgan has estimated more than $560,000 would be needed to ensure district compliance with the act.
Administrators have also discussed a need to replace aging heating, air and electrical systems and acoustical ceilings.
In other business Tuesday night, board members authorized Quin to temporarily move $950,000 into the district maintenance fund from the school’s 16th section land interest fund.
The move is only temporary, Quin said, and will allow the district to cover any expenses that arise until the district receives its revenue from ad valor taxes.
Once that tax revenue is received, Quin said she will move the 16th section interest money back into its original fund.
Also, with the appointment of Pat Lowery to the school board by Brookhaven aldermen, the board voted to release Lowey’s accounting firm from its contract to audit the school district for the fiscal year ending June 2012.
That audit would have been the last of a three-year contract Lowey’s firm had signed with the district.
To replace Lowery, board members voted to approve a one-year contract with Forte berry & Ballard, of Jackson.