March 18, 2024

NCSD Board authorizes bonds for new Berg building, talks budget

During its regular meeting Monday night, the Newton Community School Board of Education took another step forward in funding the new Berg Middle School. The board passed a resolution authorizing the issuance of general obligation bonds in the amount of $9.62 million and levying a tax for the payment of the bonds.

The board also approved Bankers Trust of Des Moines to serve as paying agent, bond registrar and transfer agent for the bonds. The move was nearly identical to an action item approved last fall.

Voters approved a $26.9 million bond commitment last September. Since then, a three-part process has been underway. The first of three bond authorizations was approved by the school board last fall for $9.59 million. Monday’s authorization was the second installment, and the remaining balance will be up for approval next year.

The bonds were sold publicly, and Citigroup Global Markets, Inc. was the winning bidder both this year and in 2016. The district worked with Jen Smith and Susanne Gerlach of Public Financial Management to secure the bonds.

The board also discussed the proposed budget and tax rate for 2017-2018, which will be an action item at the next meeting on April 10. With the exception of expenses related to the new Berg building, next year’s proposed budget is similar to this year’s budget. Total requirements in the proposal reach a total of about $73.1 million.

The current property tax rate of $15.76 per $1,000 of taxable value would drop slightly to $15.74 with the proposal. Meanwhile, the proposed instructional support income surtax rate of 7 percent is up from the current rate of 5 percent.

The property tax rate can be lowered at the April 10 board meeting, but it cannot be raised after the proposal is made public, said director of business services Gayle Isaac.

Superintendent Bob Callaghan said he felt good about the discussions the board had on budget and tax rate issues. School funding is difficult to follow, and Callaghan said he appreciated the board’s enthusiasm in asking questions.

“This is a critical function for school business officials and superintendents,” Callaghan said.

In other business, the board approved extending 2017-2018 contracts to certified staff. The board also moved to cancel its regular April 24 meeting due to conflicts of schedule. In addition, fundraiser requests for Newton High School DECA and volleyball were approved.

Contact Justin Jagler at
641-792-3121 ext 6532
or jjagler@newtondailynews.com