The ISD #299 School Board took final steps to refinance its debt service bonds at its regular meeting on April 16.

The district had considered refinancing both its maximum effort capital loan and its local bonds, but since a cost savings could not be achieved by refinancing the capital loan, it was left as is. In 2000, The district issued $9.515 million in general obligation bonds. The new issue is for $7.275 million.

Kristin Hanson of Ehlers and Associates of Roseville, Minn., recommended that the board accept the low bid of Cronin and Company, Minneapolis, at an interest rate of 4.0877 percent.

The refinancing of the bonds, known as "crossover refunding", will have the effect of reducing the debt service payment by about $59,000 per year for taxes payable 2009 through 2020.

It was not in the districtís interest to refund the maximum effort capital loan because a favorable interest rate was not offered on that debt because it has a longer term than the bonds. That can be reviewed again in the future if interest rates go down, said Superintendent Michael Moriarty.

The districtís maximum effort capital loan requires that debt service be paid first, with the remainder going to pay interest and then principal on the maximum effort loan. The maximum effort loan is now set at 28 percent of adjusted net tax capacity. The savings realized through the crossover refunding will be applied to the capital loan, resulting in an earlier payoff of that debt.

A resolution authorizing the sale of the bonds was passed unanimously.

Personnel issues

In other news, the board placed three teachers, Becky Newgaard, Sally Mensink and James Gladis, on unrequested leaves of absence for the 2007-2008 school year. Dianne Stevens, a probationary teacher, was terminated. In all cases, declining enrollment was given as the reason.

Dustin Moburg, who teaches junior high instrumental music, was granted tenure by the school board. Carrie Erickson, senior high band director, and Kimberly Kranz, elementary music instructor, will continue a third year probationary teachers and to continue as second-year probationary teachers are Courtney Novak and Jeannine Hisel.

In other personnel matters, the board accepted the resignation of Emily Schroeder, who supervised the school age care program. Superintendent Moriarty said Schroeder did an excellent job with the program and that she is part of the reason the program has been successful. A replacement for Schroeder is being sought.

Two groups to attend state events

In other business, the board approved two trips, one for the FCCLA group to attend the state convention , and for the FFA teams to attend the FFA convention on the University of Minnesota campuses.

Klug joins school board

John Klug of Caledonia was sworn in as a school board member on April 19. Klug was appointed to fill the unexpired term of Barbara Hurley, who resigned in January. Klug will serve until December 31, 2008.

Klug is a partner in Caledonia Implement and is married to Cathy Klug, a math teacher. They have four children. Their youngest, Ellen, is a senior at CHS.

Klug served on the Caledonia City Council for several terms.