Warsaw operates on balanced budget, looks to bond for roof replacement

The Warsaw School District will operate the school year with a balanced budget of $4.9 million, Superintendent Kim Schilson told school board members last week.

There were no public comments at a budget hearing prior to the regular school board meeting on Sept. 25.

The school board adopted the budget and approved a life/safety amendment to replace the 1957 building roof estimated by the architect as a $372,000 project.

The district wants to bond for the roof without raising taxes.

David Pistorius of First Mid-State Inc., investment bankers in Bloomington, attended Thursday's meeting to explain the bonding steps.

The board will hold a public hearing for bonding the life/safety amendments - the roof replacement - at the next meeting at 7:15 p.m. Thursday, Oct. 23, in the Warsaw High School library. Residents are welcome to attend, ask questions and give comments.

“No one can stop you from bonding for life/safety amendments,” said Pistorius. “This is a non-referendum bonding. But you have to hold a public hearing.

Warsaw School District will send the proposal for state approval after the public hearing and board approval in October. It typically takes a few months for the approval to return to the district. Then the board can pass a resolution.

“We don't sell the bonds until a week or two prior to your resolution,” said Pistorius. “You can send out construction bids before or after the bonds.” The district wants to do the roof work in the summer of 2009.

The district will refinance bonds issued for the elementary and high school building additions to keep the district's tax rate the same even with the addition for the new roof.

“It would be good to catch the '08 levy,” he said. “That puts it on the tax bills next summer. The district would have its first payment due in December 2009.

“If we miss the '08 levy, the money won't be collected until the summer of 2010, and you'll pay nearly two years of interest.”

Board President Don Roskamp asked if the national economic picture affects bond rates.

“Not yet,” said Pistorius. “A year ago when we bonded out, we had four to six national insurance carriers to go to that would insure the bonds. Four of those carriers no longer exist. So we shop bonds to two carriers. It's harder to get. Uninsured bonds are not triple A rated. It's more of a challenge to insure bonds in the market now.

The estimated $372,000 for the roof does not include any extras, such as air con-ditioning the 1957 building, the only part of the K-12 campus without central air.

“We're still looking into air conditioning to see if we can do something different than the architect envisioned,” said school board and building committee member Steve Lucie.

Schilson said installing individual room units that stand on the floor and vent through the windows isn't feasible.

“The building's electrical system wouldn't support that,” she said.

In other business:

- Lucie reported that ongoing maintenance for the boiler system is changing from one company to another. The board approved an annual service agreement with Manteck for water treatment and testing of the boiler system $3,109 per year.

- The board set a public hearing at 7 p.m. Thursday, Oct. 23, for waiving the limitation on administrative costs.

Kim Schilson, first hired as the Warsaw elementary principal in 2000, was hired as district superintendent in 2004. For four years she did both jobs and her salary came from two funds in the budget.

This summer, Brad Froman was named elementary principal.

Schilson is not receiving an increase in salary. The funding for her salary will switch to one funding source in the district's budget. She is no longer paid with elementary funds. The increased amount coming all from the one fund requires a public hearing and board approval.