FARMINGTON -- The School Board voted to issue $16.9 million in refinancing and construction bonds during its April 26 monthly meeting.
The board voted 3-0 with members Amy Hill and Josh Petree absent.
The move is the result of a special school election in February. Registered voters in the School District gave their support for the district to restructure debt to issue new bonds for construction projects. Of the total 153 votes (out of 8,946 registered voters), 122 people voted in favor of the proposal and 29 people voted against it.
Kevin Faught, senior vice president for public finance at Stephens Inc., attended the April meeting and presented information on the bond issue. Stephens Inc. is the finance company the board used to procure the bonds.
Faught said the district received qualified bids from two investment firms, Raymond James for 2.275% and Robert W. Baird for 2.3649%. Faught said Stephens recommended the school accept the lowest bid from Raymond James.
"When we did the analysis way back probably six months ago, we were conservative during that analysis, we assumed 3.5 percent," Faught said. "You obviously did much better than that."
Faught broke down the receipt and distribution of money for the board. The school will use the construction bonds to pay off two debts, along with fees and other costs. The school will receive new money in the amount of $9.4 million that will be used for school construction projects at the junior high and two elementary schools.
The distribution is:
• Cost to retire the bond issue from Oct. 1, 2015: $3,502,084.
• Cost to retire the bond issue from July 6, 2016: $3,299,159.
• Underwriter's discount: $222,697.
• Municipal adviser and bond counsel fees: $85,016.
• Escrow agent and prepaid trustee fees: $5,905.
The district received its money from the bond issue at closing May 4. U.S. Bank National Association will serve as bond trustee.
In other news, Superintendent Jon Laffoon updated the board on the district's Ready for Learning plan. This plan also is available on the school website.
Farmington's Ready for Learning Committee reviewed data, public comments and updated Arkansas Department of Education guidance and agreed to lift the mandatory mask mandate April 27.
According to the School District's end of year covid-19 plan, which will be in effect through May 27, masks will be optional for students and staff.
Although masks will be optional, contact tracing will continue, in the event there are any positive cases on Farmington campuses, the plan states. If both the positive case and the closed contact are wearing their masks appropriately, the close contact will not have to quarantine.
Masks will be optional at all indoor and outdoor activities sponsored by Arkansas Activities Association, and the district may still require social distancing at events as necessary, the plan states.
The board also approved the school's request for digital learning waivers for the 2021-22 school year. These include requests for waivers on attendance, class size, teaching load, six-hour instruction day, recess, clock hours and delivery of instruction.
Farmington will use Northwest Arkansas Education Service Cooperative as the provider for students in kindergarten-sixth grade who attend school online next year. These students will receive instruction through the Florida Virtual Academy curriculum. For grades 7-12, Farmington will use Virtual Arkansas for students who want to attend school virtually.
In other action, the School Board:
• Approved $500 in additional pay for certified and classified staff to compensate for new duties because of covid-19, such as teaching on-site and teaching online students, extra cleaning responsibilities and extra duty because of social distancing. The additional pay cannot exceed a budget of $206,100. This additional pay will come from federal covid-relief money and is only effective for the 2020-21 school year.
• Approved buying 660 Chromebooks from SHI for $192,597.
• Approved renaming Lady Cardinal Field To Randy Osnes Field.
Marc Hayot may be reached by email at mhayot@nwadg.com.