Sibley East Public School received a favorable interest rate last week in the sale of general obligation aid anticipation certificates of indebtedness.
At the Board of Education meeting June 19, school board members awarded the sale of $1,660,000 in aid anticipation certificates to Piper Jaffray & Co. of Minneapolis. The net interest rate is 3.8326%.
Three bids were received. The certificates will mature August 6, 2007.
Aid anticipation certificates are used by Sibley East Public School to meet its cash flow needs. The district is borrowing money in anticipation of receiving its state aid, Betsy Knoche of Ehlers and Associates, explained.
Superintendent John Langen-brunner predicted that the district would likely break even by selling the certificates this year, meaning interst received on short term investments could offset the certificate interest.
In other business, the Board of Education:
• Approved a three year environmental consulting agreement (2007-2009) with Harbo Consulting Agency, North Mankato, at an annual fee of $18,000 per year. According to Langenbrunner, the consultant, Larry Harbo, is allowed to set fees based on a square footage basis. “I think Larry Harbo has done a wonderful job,” Langenbrunner said. “He has saved the district money that I haven’t seen in other districts.”
• Renewed 2006-2007 contracts with Sibley County Public Health for school health services (school nurse) and Early Childhood Health and Development Screening. Langen-brunner said that Sibley East, in 2008, is looking at conducting the health and developmental screening itself.
• Renewed a Post Secondary Enrollment Options contract between Ridgewater College and the Sibley East School District for the 2006-2007 school year. By approving a contract directly with the college, the local district is able to retain more funds, according to High School Principal Jim Swanson.
• Accepted donations from Progressive Growth Corporation, Gaylord for $7,500, Jerry’s Home Quality Foods for $500, and Dennis Neisen of $500 for the purchase of weight room equipment.
• Authorized school district attorney Tony Nerud to associate with the Knudtson Law Firm to resolve an eight-year-old health insurance claim.
• Was informed by Langenbrunner that the legislature will provide districts with energy assistance of $3.67 per pupil unit. This will provide Sibley East with an additional $4,000 – $5,000, Langenbrunner said.