Posted: 3/27/07
Two teachers placed on unrequested leave
By Jane Palen
Managing Editor
The ISD #299 school board agreed on March 19 to place two teachers on unrequested leave of absence.
Elementary teacher Mary Newgaard and special education teacher James Gladis will have their contracts terminated as of June 30, 2007. The decision was made due to declining enrollment and budget reductions.
The decision on which teachers are placed on unrequested leave is based not only on seniority but also on areas of certification. Cuts may be made in one area, but if the teacher affected by the cut has certification in another area, he or she can "bump" a teacher with less seniority that teaches in that area.
According to Superintendent Michael Moriarty, there are several factors which could lead to recall of the teachers, including resignations of other teachers and/or an increase in funding.
The teachers may request hearings on their terminations.
The following program reductions were also approved by the board:
ï elimination of one section of kindergarten;
ï a reduction of first grade to two sections and
ï the elimination of one middle school teaching position.
It was noted that if the legislature provides funds for all day/every day kindergarten, there will be no reduction there.
It was also noted at the meeting that after the 2007-2008 school year, the administration will be reduced from three principals to two.
Superintendent Moriarty noted that the class of 2007 with 106 students will be the last class of 100 or more students for the next 12 years.
Next yearís freshman class is estimated at 85 students.
School may re-fund capital loan
In other discussion, the board weighed its options in refinancing its debt.
A maximum-effort capital loan was taken out in 2001 to finance the construction of the middle/high school and the remodeling of the elementary school. An additional $9.515 million in school building general obligation bonds were issued to finance the local share of the project.
The district is required to levy 28 percent of the adjusted net tax capacity of the districtóthe "maximum effort" required to pay down the loan. The maximum effort in payable 2007 amounted to $1,409,896. Debt service must be paid first, and the remainder is applied to the capital loan. In this case, $859,137 went to service the bond, and $611,000 to the capital loan. The corresponding tax rate is 33.19 percent.
The reason the district is looking at refinancing, said Superintendent Moriarty, is that an increase in property values, which determines the districtís tax capacity, increases the tax rate and the amount of taxes paid by residents of the district. The loan will be paid off earlier, but at a higher rate, he explained.
Conditions are right for the district to consider refinancing at this point, said Moriarty. Currently, the tax rate is 33.19 percent on the debt, and next year will increase to 34.14 and eventually go to 36.88.
If the district refinances, the tax rate will be reduced to 31.83 percent next year and will decrease to and estimated 30.74 percent in the succeeding years.
The board heard a proposal for refinancing the bonds from Kristen Hanson of Ehlers and Associates. The district will also consider proposals from other firms before making a decision on whether to refinance at its April 2 meeting.
Caledonia Argus
314 West Lincoln St.
P.O. Box 227
Caledonia, MN 55921-0227
507/724-3475
E-Mail: editor.argus@ecm-inc.com