The Hamburg School District received nearly $150,000 as a good faith deposit on the bonds that were recently sold to an investment firm.
Jason Holsclaw with Stephens Public Finance Department presented a resolution to the Hamburg School Board on Monday to approve bonds that were recently sold to finance the upcoming projects at HSD.
Holsclaw said that Robert Bayer is the investment company who won the bid with an interest rate of 2.94 percent. The bonds sold for nearly $7.5 million with an additional premium of about $126,000.
Holsclaw said interest rates are low and there is a high demand for bonds, so Hamburg was able to receive a little more money than originally anticipated.
Hamburg will receive approximately $7,626,000 less the estimated $150,000 in underwriting and other professional fees.
Holsclow told the board that because of the tax exemption that comes with the bonds, the projects built with the money would have certain stipulations including “no private activity.” One of the board members questioned if this would prevent the district from selling sponsorships to the football field as one of the projects is building a turf football field.
Holsclow said that there will be some restrictions but that it could be done and that his firm could review any advertising contracts to make sure they didn’t violate any of those restrictions.
The sale of the bonds is expected to close on Aug. 28 and Holsclow said the money would be wired into the district’s account.
The projects to be funded include $1.5 million for two classrooms; an alternative learning environment classroom; an art room; and restrooms on the Hamburg High School campus; as well as $1.15 million to build a baseball field, soccer field, bathrooms, concessions and a parking lot
It also includes $1.1 million to expand and remodel the auditorium on the Hamburg High School campus; $800,000 to convert the grass football field to an artificial turf field;$600,000 to remodel the gym, including roof, interior, exterior, HVAC and electrical; $446,000 to refurbish the track; $300,000 to add plumbing, restrooms, dressing rooms, storage, and water fountains in the indoor facility for female athletes; and $174,370 for new HVAC for the cafeteria, kitchen, dressing rooms and concession area.
Other remodeling will include the concession area on the Portland campus and building a covered walkway to the main building on at Portland campus; $344,500 to remodel the restrooms on the Nobel/Allbritton campus; $65,000 to connect the Marilyn Chambers Building to the main building on the Nobel/Allbritton campus; $197,600 to remodel bathrooms on the Hamburg Middle School campus.
Approximately $150,000 of the funds will be set aside for professional fees associated with the project, the cost of the bond issue, and potential project cost overages.
In other news:
-Approximately 1,726 students were registered in Hamburg district as of Monday. Superintendent Tracy Streeter said that this number would fluctuate once school started, but she would have a more accurate number at the next board meeting.
-Hamburg High School Assistant Principal Eddie Tucker presented the board with changes to the honor graduate policy. The changes were all course related and will only affect class of 2023 and beyond. The board approved the changes and the full policy can be reviewed in the handbook.
-The board approved the purchase of a Chevrolet Tahoe to pull the school’s football and band trailers. The money for the purchase will come from a $20,000 insurance check received after one of the school vehicles was wrecked last year while checking the road conditions for school. The recommendation for the Tahoe came from Finance Director John Spradlin, who said that a Tahoe would be more efficient than a truck because it could also hold up to six students if needed for small band activities or other -rips that didn’t need a full bus load.
4The board approved that a stipened of $150 per day be paid to the employees who attended the new teacher academy. The estimated amount to be paid out is approximately $6,625.00.
-The board voted to began processing the necessary background checks for employees who didn’t have sufficient clearance on file. Some of the employees were hired and given background checks at a time when certain things were not required and new laws in place require they be screened again. Fifty-three classified employees need to be checked as well as some licensed employees, who must be renewed.
The cost of a classified employee’s background check is $53. The cost of a licensed employee background check is approximately $125.