Kiski Area hires 2 companies, weighs upgrades of schools
The Kiski Area School District board took another step Monday toward an elementary school building project.
The board approved retaining Janney Montgomery Scott as the investment adviser and underwriter for a proposed bond issue. The board also named Dinsmore & Shohl as bond counsel.
Officials could not immediately say how much either firm will be paid. Their fees are determined, in part, by the amount of money the district decides to borrow.
The firms were appointed on votes of 8-0. Board member Benjamin Silvestri was absent.
The board is considering borrowing up to $30 million for a project that could see the district renovate and add on to some of its seven elementary schools and possibly its intermediate school.
The district could build new schools while closing others.
For investment adviser and underwriter, the board entertained proposals from Janney Montgomery Scott and PNC.
The board is also considering whether to issue tax-exempt bonds or Build America Bonds. Build America Bonds are taxable, but the district would see 35 percent of the interest reimbursed by the federal government.
Build America Bonds were created by Congress in the federal stimulus. The program expires at the end of this year.
Although the interest rates on the taxable bonds is higher, the district would save money using the Build America Bonds, Business Manager Peggy Gillespie said.
Based on a $30 million borrowing over 25 years, the district would see nearly $13 million of the $37 million interest cost reimbursed. At a net cost of about $24 million, the interest cost is about $1.3 million less than on the tax-exempt bonds, Gillespie said.
An advisory committee of district residents, teachers, administrators and school board members is considering building options for the district. They have narrowed choices down to six scenarios.
The committee will review those scenarios in greater detail when it meets at 6:30 p.m. Monday in the board room at the central office.
The committee is expected to give its recommendation to the school board by the end of the year.
Matters the committee members have so far agreed upon is closing Washington Elementary School, moving sixth-grade students from the elementary schools to the district's current intermediate school, and closing Bell-Avon Elementary and building a new school in that area, board member David Anderson said.
In other business:
• The board approved naming Berkheimer Tax Administrator as the earned income tax collector for Allegheny Township, effective Jan. 1, at the commission rate of 1.45 percent of collections.
• Approved the initial reading of a new policy governing the district's fund balance.
Under the policy, the district would seek to maintain a fund balance of no less than 2 percent and up to 8 percent of its expenditures for that school year.
Should the fund balance top 8 percent, that money would be placed into a capital reserve fund.
• The board approved paying the Allegheny Township crossing guard $32 per day effective in October.
• The board approved an agreement with Highmark for services related to the district's participation in the early retiree reinsurance program administered by the federal Department of Health and Human Services.
The temporary program is intended to make it easier for employers to provide health coverage to early retirees. Employers accepted into the program will receive reinsurance reimbursement for medical claims for retirees age 55 and older who are not eligible for Medicare, and their spouses, surviving spouses and dependents.
• The board scheduled its annual reorganization meeting for 7 p.m. Dec. 6 in the board room at the central office.
