LINCOLN PARISH SCHOOL BOARD
Ruston, Louisiana
REGULAR SESSION
Tuesday, February 2, 2016 10:30 a.m.
The Lincoln Parish School Board met in Regular Session on Tuesday, February 2, 2016, at 10:30 a.m. at Glen View Elementary School located at 1601 Bittersweet Avenue, Ruston, Louisiana. Members present were Ms. Debbie Abrahm, Mr. Otha Anders, Mr. Michael Barmore, Ms. Lisa Best, Mr. David Ferguson, Mr. Danny Hancock, Ms. Lynda Henderson, Mr. Trott Hunt, Mr. George Mack, Jr., Mr. Joe Mitcham, and Ms. Susan Wiley.
Mr. Curtis Dowling was absent.
President Mitcham called the meeting to order. The invocation was given by Mr. Barmore, and Ms. Best led in the Pledge of Allegiance to the American Flag.
Upon a motion by Mr. Barmore, seconded by Ms. Abrahm, the Board unanimously voted to adopt the agenda as printed.
Upon a motion by Mr. Anders, seconded by Mr. Hunt, the Board unanimously voted to approve the minutes of the Regular Session held on January 4, 2016, as presented.
Following a month of studying eight policy revisions, Mary Null, Assistant Superintendent, asked board members to approve changes to: School Board Ethics – BH, Hazardous Substances – EBBG, Employment of Retired Personnel – GBDA, Annual Leave – GBRK, Home Study Program – IDCH, Instructional Materials – IFA, Textbook Selection and Adoption – IFAA, and Academic Achievement – IH. One board member had a question about revisions to the School Board Ethics policy. Ms. Null said she would find the answer to her question and report back.
Upon a motion Mr. Hunt, seconded by Ms. Best, the Board unanimously voted to approve the revisions to the other seven policies: Hazardous Substances – EBBG, Employment of Retired Personnel – GBDA, Annual Leave – GBRK, Home Study Program – IDCH, Instructional Materials – IFA, Textbook Selection and Adoption – IFAA, and Academic Achievement – IH.
The time had arrived for the last sale of bonds following the November 16, 2013, voters’ approval of the Ruston School District No. 1 issue for capital outlay according to Business Manager, George Murphy.
Prior to the opening of bids, the President called upon Mr. Grant Schlueter of Foley & Judell, L.L.P., Bond Counsel, to advise the Lincoln Parish School Board as to what action was necessary in order to proceed with the reception of bids and sale of $8,000,000 of General Obligation School Bonds.
Mr. Schlueter noted that the first order of business was to take action on a resolution to authorize the opening of bids.
Upon a motion by Mr. Otha Anders, seconded by Ms. Lynda Henderson, the Board unanimously voted to adopt the following:
RESOLUTION
Providing for the opening and tabulation of the sealed and electronic bids received for the purchase of Eight Million Dollars ($8,000,000) of General Obligation School Bonds, Series 2016 of Ruston School District No. 1 of the Parish of Lincoln, State of Louisiana, approving the Official Notice of Bond Sale and Official Statement in connection therewith, and authorizing the President and the Secretary of the Lincoln Parish School Board to sign copies thereof as evidence of the approval thereof.
Mr. Schlueter mentioned the district’s retention of a “AA-“ rating from Standard and Poor’s, which was higher than the majority of school boards’ in Louisiana, was issued because of the school system’s stable financial outlook, reserves, and low overall debt. He said it makes a huge difference and translates into lower interest rates and lower costs to the property tax payers. After opening and receiving the bids, it was announced that six bids had been received for the purchase of the Bonds. Bids for the bonds were received from:
FTN Financial Capital Markets – 2.38%;
Robert W. Baird & Co., Inc. – 2.54%;
Raymond James & Associates, Inc – 2.56%;
Janney Montgomery Scott LLC – 2.64%;
Stifel, Nicolaus & Co, Inc – 2.69%; and
Wells Fargo Bank – 2.90%.
He said they all wholeheartedly recommended acceptance of the low bid of 2.38% from FTN Financial Capital Markets that was slightly lower than the 2.65% bid in 2015 for the $5,000,000 bond issue and might be the lowest bid ever received.
Upon a motion by Mr. Otha Anders, seconded by Ms. Lisa Best, the Board unanimously voted to adopt the following:
RESOLUTION
Accepting the bid of 2.38% from FTN Financial Capital Markets the purchase of Eight Million Dollars ($8,000,000) of General Obligation School Bonds, Series 2016 of Ruston School District No. 1 of the Parish of Lincoln, State of Louisiana.
The final resolution to complete the bond sale authorized the incurring of debt and the issuance of bonds.
Upon a motion by Mr. Danny Hancock, seconded by Mr. Curtis Dowling, the Board unanimously voted to adopt the following:
RESOLUTION
Authorizing the incurring of debt and issuance of Eight Million Dollars ($8,000,000) of General Obligation School Bonds, Series 2016, of Ruston School District No. 1 of the Parish of Lincoln, State of Louisiana; prescribing the form, terms and conditions of said Bonds; designating the date, denomination and place of payment of said Bonds; providing for the payment thereof in principal and interest; and providing for other matters in connection therewith.
Since the Board had arrived early and observed a Sharing the Art of Reading (STAR) lesson with a first grader, Lisa Mangum, asked if there were questions. Hearing no questions but how impressed members were, she communicated that reading regression during the summer is a problem throughout the parish. After researching districts across the country, she mentioned two initiatives that are in the beginning stages, A Thousand Books Before Pre-k and turning an old school bus into a book mobile. A meeting has been scheduled with community partners, clergy, business leaders, etc. at 11:30 on Wednesday, February 10, in the Lincoln Parish library’s Community Room. They are attempting to get books in children’s hands before they become students because many are not receiving them at home. She answered several questions from board members before being seated.
Independent Auditor and partner with Allen, Green & Williamson, Amy Tynes, presented a very thorough audit report for the year ending June 30, 2015. She called attention to two reports, the Comprehensive Annual Financial Report and the Single Audit Report. Ms. Tynes went over the results of the audit for the year ending June 30, 2015.
In the Comprehensive Annual Financial Report (CAFR), the LPSB received an unmodified opinion, a clean opinion, which meant no items were considered suspicious or significant enough to cause the financials to not be stated correctly and no modifications were needed. Total liabilities were $208 million, an $89 million increase from the previous year, because of changes in reporting the payment of health care and LSERS and TRSL pensions for retirees. In the next few years, the health care liability will no longer be a partial payment on a thirty year schedule, but will become a one-time hit and will increase drastically.
In day to day operations, the General Fund balance was almost $18.8 million with approximately $11,000,000 unrestricted. That was about 22% of operating expenses, so the school system could last 2.6 months if no funding was received. Revenue in the General Fund was $52.2 million, which was an increase from last year of $4.2 million primarily due to augmented sales taxes. Total expenses were $49.8 million that was only an increase of $900,000 from the previous year. Including $1.7 million in transfers in and transfers out showed a profit of $620,000 for the year in the General Fund. She called attention to profits or losses in the funds making up the General Fund and the Nonmajor Governmental Funds. Title I revenue was $2.2 million. Even though $3,053,018 was brought in for School Food Service and it had an ending fund balance of $593,579, that fund experienced a loss of $243,434 for the year. She suggested looking at costs to prevent losses in future years. The Parish Wide Maintenance Fund almost broke even and the School District Maintenance Funds had profits for the year. She called attention to debt service for each of the school districts and Capital Project Funds.
Internal Service Funds split workers’ compensation and group health insurance. Workers’ Compensation had a remaining fund balance of $367,000, and Group Health Insurance had a $3.8 million balance; however a $48 million prior period adjustment was made during the year. GASB said in absence of a trust to cover the costs to move that liability, it was moved from the Health Care Fund to the full accrual that she mentioned earlier in her presentation.
Moving on to the Single Audit Report, Ms. Tynes said a total of $6.6 million was received in federal awards. The auditors tested the Child Nutrition Program this year. An unmodified, clean opinion was issued with no significant deficiencies or findings regarding internal controls or state compliance of the program.
In closing, Ms. Tynes said Lincoln Parish is a very large school system that has an awesome financial report. Not many school systems have unmodified opinions with no management letter comments or findings. Her firm appreciates the great staff at the Lincoln Parish School Board.
George Murphy introduced the following who work in the Business Department, Kim McCormack, Kathy Pool, Brenda Magee, Cindy Hinton, Christine Hanna, Bonnie Fogger, Kay Bradford, Diedre Smith, and Tammy Clark. He expressed his appreciation for their conscientious work.
Joe Mitcham and Mike Milstead also voiced their thanks to the great group.
According to Mr. Murphy sales taxes amassed for the period ending January 31, 2016, were $2,000,350 which was up 8.56% for the month. Year-to-date the collections were up 28.85%. There were no recoveries through audits during the month, and that fund was down over 47% year-to-date. Collections in the ‘67 and ‘79 fund were $909,251, and $1,091,099 was generated in the ‘93 and ‘00 fund. The reason given for the increase was primarily oil and gas extractions. Once again, he noted, it was a very good month.
In the end of December 2015 financial report, Mr. Murphy called attention to a revised letter-sized report. The Total Fund Balance was $36,098,680, which was up $4.7 million compared to December 2014 and $368,000 compared to November 2015. The Unassigned Fund Balance that Ms. Tynes and Mr. Schlueter had mentioned was $10,942,748.
In the health plan update, George Murphy said it was a horrible year. Through December 2015, the fund suffered a $447,350 loss, and the fund was down $1.6 million year-to-date. He reiterated that changes to become effective in January 2016 had recently been approved. He will closely monitor the Health Care Fund and let the Board know if the changes are making a difference.
In her Personnel Report, Dr. Doris Lewis, Director of Human Resources, verbalized the:
1. Retirement of Charles “Ed” Colvin, teacher at Ruston High School, effective January 19, 2016.
2. Resignation of the following:
Hayley Schaff, teacher at Ruston Elementary, effective January 11, 2016; and
Kayla McGuire, teacher at Ruston High, effective February 1, 2016.
3. Point of Reference/Transfer of Jennifer Breeding from Simsboro Elementary to teacher at Lincoln Parish Early Childhood Center because of increasing special education numbers, effective January 25, 2016.
4. Employment of the following:
Katharine James as teacher at Ruston Elementary School effective January 25, 2016, replacing Hayley Schaff who resigned;
Jeremy Henriques, teacher at Ruston High School effective February 1, 2016, replacing Ed Colvin who retired; and
Merideth Boyd, teacher at Ruston High School effective February 8, 2016, replacing Kayla McGuire who resigned.
Architect Mike Walpole communicated that after preliminary meetings with school administrators, his firm is preparing plans for security at Choudrant Elementary, Choudrant High School, Dubach School, and Simsboro School. The plans will be very similar to what’s been done to maintain security in the Ruston schools. He anticipates asking for permission to bid the project next month or at a board meeting in the near future.
After meetings with Ruston High School principal, Ricky Durrett, Coach Brad Laird, and James Payton, Transportation Coordinator, Mr. Walpole had also begun preliminary plans for a three-room addition to New Tech and boys’ and girls’ soccer buildings at the northeast corner of the track. He noted the current freshman locker room would be converted to a boys’ track facility. Mr. Walpole distributed copies of the plans, which he anticipates asking for permission to bid at an upcoming meeting. After meetings with some members of the James family, initial plans for a columned access between the soccer buildings with “James Field” across the top was also mentioned. Details of that are still to be worked out. He answered brief questions.
In his construction update, James Payton said:
1. The site with the most changes was the Choudrant High track. The rubber texture was down and it was sprayed a rusty red color. Striping should take a couple of days next week. They are in the final stages and Paul Riley, Engineer with Riley and Company, tentatively plans to ask for substantial completion of the project at the next board meeting.
2. The two classroom addition at Ruston Elementary had a February 21 completion date for the interior, but that had also been delayed because of weather. The main hold up with the exterior was the difficulty procuring bricks that match those in the existing buildings. They were scheduled to be delivered yesterday.
3. Hillcrest’s five classroom addition has a March 19 finish date, but it may take until the end of April. Interior blocking is complete and plumbing was roughed in. Bricking the outside was scheduled to take four weeks, and they are in their second week.
4. At I. A. Lewis, workers are blocking the addition of nine classrooms and two half sized classrooms.
5. An extension of the girls’ gym has been planned at the north end of Ruston Junior High. The exterior footing was poured, and they were wrecking the forms. They are getting ready to start interior grade beams. On the south part, they are adding an ag classroom and lab, home-living classroom and lab, and a spare classroom. The footing has been poured, the plumbing was roughed in, and they were getting ready to pour the slab.
In a Report of the Superintendent, Mr. Milstead said:
1. The LSBA convention is coming up, and nine members (and he) have planned to attend later in the month. Convention information was placed in portfolios.
2. There is no second board meeting planned in February because of the current meeting in a school.
3. State Superintendent of Education, John White, will be in the district and at Ruston Elementary tomorrow. He was interested in the mentor/mentee program that is part of Louisiana Tech’s work with Believe and Prepare. Supt. White will meet with area superintendents in Monroe tomorrow.
4. Reminded everyone that Governor John Bel Edwards will be at the Ruston Civic Center from 2:30 – 4:00 p.m. on Thursday for a Meet and Greet.
5. Lunch after the meeting is being provided by the staff at Glen View. He invited everyone who desired to stay and partake.
6. He is thankful for the Lincoln Parish library being willing to help with the school system’s reading programs and initiatives.
7. He is also thankful for the Lincoln Parish School Board’s business department and all they do for the district.
Following a couple of questions and a comment from board members and a word of thanks and praise from Allen Tuten, a former board member, the meeting adjourned at 11:40 a.m. on a motion by Lisa Best.
______________________________ ______________________________
Mike Milstead, Secretary Joe E. Mitcham, Jr., President