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Board reviews $2M–$2.5M in remaining bond funds and a $724,151.70 IRS arbitrage liability
Summary
Superintendent presented a prioritized list of capital projects for roughly $2.0–$2.5 million of remaining bond proceeds and explained a bond-arbitrage calculation that currently estimates a $724,151.70 payment to the IRS at the five‑year anniversary of the bond.
The Hampshire County Board of Education reviewed a proposed prioritized list of capital projects for remaining bond funds estimated at $2.0 million to $2.5 million and received an explanation of a bond-arbitrage liability the district must calculate and remit to the IRS at the bond's five-year anniversary.
The superintendent said remaining bond proceeds total conservatively between $2 million and $2.5 million and that, after working with bond counsel and arbitrage specialists, the estimated arbitrage payment has declined from an earlier $1.2 million estimate to about $724,151.70. She said the district cannot remit the payment until the required date and that the calculation will appear on the June 1 board agenda for formal remittance.
Board members reviewed sample projects on a staff-prepared list, including HVAC replacements tied to a MIP grant, partial roof work, gym floor refinishing (two middle schools estimated at about $30,000 each and a larger resurfacing at the high school), playground equipment, LED lighting, and a rework of parent drop-off at Ice Mountain estimated at roughly $89,470. The superintendent said projects marked “red” were immediate priorities and that the administration would prioritize the top five projects for prompt action, bringing larger-ticket items back for board approval.
The superintendent noted compliance and safety work (fire marshal items) and discussed constraints around certain safety hardware—specifically, that some ‘‘night lock’’ devices were denied by fire marshals for new doors but the district would meet with stakeholders and pursue approved approaches and potential grant or matching fund sources, such as COPS grants, where appropriate.
What happens next: Staff will finalize the arbitrage calculation for the June board agenda, obtain firm cost estimates for prioritized projects, pursue applicable grants and leases where feasible, and return recommended procurements above the board's approval threshold for action.
