School board explores payment on bonds

Sisters school board members revisited the topic of how the district will repay the $2.1 million plus interest that it owes from the Full Faith and Credit obligations it issued last spring at their Tuesday, April 8 board meeting.

Superintendent Elaine Drakulich asked the board to revisit the question, which had been tabled at the board's March 11 meeting.

"We do obviously have the ability to make our payment this year with the budgeted amount from last year," said Drakulich, "and we could do the same for next year, as the dollar amount (the district receives from the state) per student will remain about the same as this year. We do have going into the second year of the biennium still some strong funding, some of the strongest funding that we've had in the history of Oregon."

Drakulich cautioned the board that although the funds will be adequate for next year to make the necessary payment, what will be available in future years is anyone's guess.

"It's a huge question. We just heard last night at the OSBA (Oregon School Boards Association) conference in Redmond that the potential for the school improvement funds (from the state) is not necessarily there," she said.

Drakulich assured board members that this year's budget committee will be able to develop a strong budget for the 2008-09 school year without using Lundgren Mill funds to make next year's full faith and credit payment.

"It seems like we have this year budgeted, and I don't feel comfortable or feel the need to make a grandiose resolution of a long-term plan of how to deal with this. Personally, I feel comfortable dealing with this year by year," said board vice chairman Glen Lasken. Board member Christine Jones agreed.

Board members discussed in the future using the portion of the $2.1 million that the district has not yet spent, a little less that $400,000 to help repay the debt. Board member Tom Dumolt asked for input from the Facilities Task Force and the finance committee regarding this alternative. Board member Jeff Smith cautioned that before making any decisions the district must determine if there is an absolute facilities need out there for which the remaining funds are needed.

Last month board members adoption a new resolution that supersedes past resolutions and allows the district to use proceeds from the sale of the Lundgren Mill property to repay the $1.2 million it owes the Oregon Department of Education as a result of a disallowed homeschool program and the $2.1 million plus interest it owes to repay the Full Faith and Credit obligations.

The school board sold the Lundgren Mill property for $3.2 million in June of 2005, receiving a down payment of $1.2 million to be followed by three individual payments of $700,000 plus interest. The final $700,000 plus interest payment is due October 1 of this year.

In the end chairman Mike Gould left the decision in the hands of superintendent Drakulich.

"As you begin the process and work through the budget, if you feel compelled to get back to us with a recommendation that you'd like for us to take some action on regarding this, then we'll do so. If you feel there is a solution and you don't need action from us, then we'll be responsive also," he said.

Earlier during the portion of the meeting set aside for public comment, district resident Mike Morgan questioned the board about the legality of the "emergency" executive session that was called on March 13 to discuss the contract renewal of elementary school counselor George Shackelford.

Tim Barrier and Quay Richerson also voiced concerns about superintendent Drakulich's statement at a March 18 press conference that public comments at a recent school board meeting had been divisive. (See "Public asserts right to comment," The Nugget, April 9, page 2.)

"I would just like to know what you really mean? Do you want, I mean I know you want, public input," said Richerson.

Superintendent Drakulich was quick to respond: "Oh, I encourage it (public comment). It's what makes this district great. I would hope that when we have a conflict that gets to that level that we could have a meeting with the players and sit down and talk about it, not necessarily a board meeting."