Cape schools nearer to bond issue, but budget worries remain

The Cape Girardeau School Board took another step toward a construction bond issue, but members said they want to make sure they are also resolving budget issues.

During its monthly meeting Monday, the board reviewed four bids for bond underwriting services. The board voted to accept a bid for services from St. Louis-based firm, Stifel Nicolas. For a $35 million bond issue, the firm estimated $225,980 in fees, the lowest bid.

The rough draft of the facilities plan put construction and renovation costs at $35 million, but the board has not approved a bond issue. District officials said they want to approach voters with a no-tax-increase bond issue in April.

Toward the end of the meeting, some board members expressed concerns about moving forward with a bond issue while trying to balance the budget.

Board member Paul Nenninger said the bonds present a complex issue to voters.

"We can afford the debt, but we can't afford to turn the lights on once we build the building," he said, referring to the additional maintenance costs of the projects that would be funded by a bond issue.

Board members Laura Sparkman and Tony Smee agreed, saying ongoing costs will increase.

"We can't encumber the district with debts we cannot pay," Sparkman said.

Board members said they wanted to take steps to prevent dipping into the reserves, which has been done to balance the budget in recent years. When the district approved its $42.9 million operating budget in June, it moved $1.3 million from its reserve funds to balance the budget.

The board also reviewed compensation levels for part-time teachers and administrators during a work session before the meeting. Welker presented three scenarios for capping compensation for retired part-time teachers, which could save money for the district.

The district employs 12 retired teachers and three retired administrators. Retired workers are allowed to work 550 hours. The district compensates them based on where they fell on the salary schedule before retiring.

Nenninger said he would need more information about the overall budget before deciding on any changes.

Superintendent Dr. Jim Welker said he wants to brief the board on the overall budget situation.

"It's looking more and more like things continue to get tight as far as the budget goes," Welker said.

Board member Dr. Steven Trautwein said the discussion should occur sooner than later.

"It impacts every decision we're going to be faced with," he said.

In other action, the board approved the following items:

* The appointment of J.B. McClard as the district's Asbestos Hazard Emergency Response Act designated person.

* The approval of Deena Ring, director of special services, as foster care liaison.

* An annual report to the board about security incidents.

abusch@semissourian.com

388-3627

Pertinent address:

301 N. Clark Ave. Cape Girardeau