Schools
Richfield Schools Up Bond Sale Amount to $16.5 Million
Facing a decrease in state aid and other sources of revenue, the board approves a sale of $16.5 million in bonds.
Due to shifts and shortages in state aid payments, the approved a resolution to sell $16.5 million in bonds for cash flow borrowing at a special meeting Monday night.
This in case of a , which quite obviously came to fruition.
Richfield School District Business Manager Michael Schwartz said the district is in need of more money due to the shift of state aid payments outlined in the from 70/30 to 60/40.
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"When we recalculated our cash flow incorporating the new shift percentage, the need for cash flow borrowing increased to $16.5 million," Schwartz said.
In addition, with the , Schwartz said this would not affect the amount of money that could be obtained from the sale of bonds.
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Other discussions at the special meeting included a special ballot that takes place Nov. 8, 2011 asking voters to either increase per-pupil education formula or maintain it at $301.40. .
Quoting Superintendent Bob Slotterback, board Chairman Peter Toensing said failure to generate additional revenue for the district would result in an estimated increase in average class size of six students.
"This would mean, based on current class size targets, that we would be looking at a target class size of around 30 students per class at the K-2 level, with incremental increases in the older grades," Toensing said.
Other than simple discussion, no further action was taken. Richfield Patch will continue to follow this issue.
The sale of the bonds is expected to take place Aug. 15 and will be discussed at the board’s regular meeting that evening at 7 p.m. along with other issues pertaining to the referendum and special ballot.
