Just as many local homeowners have re-financed their mortgage at a lower rate and used the cash savings to finance home repairs, a plan to refinance 15-year-old bonds will allow Crothersville school buildings to receive some needed upgrades.
Last week, the Crothersville Community Schools board decided to move forward with the refinancing plan will decrease the current interest rate from 4.34% to less than 2% for bonds issued for a project.
The bonds were originally issued in 2000 when the high school underwent a total renovation. The refinance plan will extend the school’s mortgage two years resulting in a ‘home equity’ style of funding of around $2 million.
The $2 million generated by that move will be used to make repairs and improvements at the school, including new roofs, heating, air conditioning and ventilation systems and security systems.
“After 15 years, the building needs some general upkeep,” Superintendent Terry Goodin said during the board’s meeting.
No one from the public or the five-member school board had any comments about the proposed refinancing during a public hearing.
A special meeting was conducted before the hearing to adopt the required resolution for the amendment to reissue and refinance the bonds. The bonds were issued by the 2000 School Building Corp. Members of that building corporation are Debra Schill CPA, Scott Kovener, and Terry Masters.
Goodin said the tax rate will not be affected, and the levy will remain the same. “The money must be used in capitol projects not for general fund expenditures,” said the superintendent.
He said the roofs on the buildings will be the first project funded after bids are let. That’s tentatively set to happen during the summer and will be finished before school starts, he said.
Goodin said newer technology in roofs will be a part of the roof replacement bidding process. He said a Duralast roof is more weather resistant and being a white roof also is more energy efficient.
Goodin said in addition to the roof, air, heating and security upgrades, the school board will determine other needed improvements to be completed.
In 2000, the elementary school and junior-senior high school were remodeled with a gymnasium, cafetorium, two libraries and new classrooms added and air conditioning installed.
In an additional item on the agenda, the school board also unanimously voted to approve the purchase of property at 207 S. Preston St. in Crothersville for $15,000 using the capital projects fund.
The property just south of the school administration building, has been repossessed by The Peoples Bank, contains a home that will be demolished. The area can be used for future expansions, possibly parking, Goodin said.
The board approved the authority of Goodin to handle all necessary paperwork concerning the purchase.