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Mehlville board accepts year-end financials, approves debt prepayment to trim interest costs
Summary
Mehlville R-IX reported a FY-end operating loss of about $1.0 million but healthy cash reserves (31.9%); the board approved a one-time defeasance/prepayment of up to $700,000 to save an estimated $280,000 in interest.
At its Aug. 21 meeting, the Mehlville R-IX Board of Education accepted year-end financial statements and approved a debt prepayment aimed at reducing long-term interest costs.
Chief Financial Officer Marshall Crutcher presented the year-end financials, saying the district forecasted a net operating loss between $950,000 and $1.1 million and closed the year at a net loss of $1,000,000.19. He told the board that DESE withheld $1,000,000 of an early-childhood payment in June (a timing difference), which will be received in July and eased the cash position. "Cash reserve is still at a healthy 31.9%." Crutcher said.
Separately, Crutcher described a two‑year defeasance plan that would prepay a portion of outstanding general-obligation bonds. The proposed prepayment for this year was roughly $625,000 principal, projected to save about $280,000 in interest expense over the remaining schedule. The board approved a resolution authorizing prepayment not to exceed $700,000 and authorized related escrow and deposit agreements, voting 7–0 to proceed.
Board action: the board approved the ASBR 24–25 financial statements and the debt-prepayment resolution by unanimous votes. Trustees discussed that prepayments would reduce long-term interest expense but that savings may decline in future years as principal declines.
