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Board accepts donations, approves claims and records $120,442 arbitrage rebate on 2022 bonds
Summary
The board accepted multiple donations to athletics and programs, approved claims including two school buses purchased from Midwest Transit ($333,832), and recorded an arbitrage rebate payment of $120,442.77 tied to 2022 bond earnings.
At its June 8 meeting, the Western Boone school board approved routine financial items including donations, claims and monthly reports and discussed two large purchases and the federal arbitrage rebate related to 2022 bond proceeds.
Administration presented a long list of donations supporting athletics and programs (examples: Eli Lilly $5,000; Michael and Susan Nice $10,000; Interstate Studios $4,000) which the board accepted. Claims presented for the May 11–June 8 period included a stage rental ($3,887), new timeclock terminals ($8,359.59) and two school buses purchased from Midwest Transit for $333,832; the board approved the claims as submitted.
The treasurer explained an arbitrage rebate payment of $120,442.77 was due to the U.S. Treasury on the district’s 2022 bonds. The district had invested bond proceeds and, after market shifts, earned approximately 2.81% on invested proceeds while the bond yield was 2.25%, resulting in $623,000 in interest earnings on the bonds; federal rules require repayment of the excess earnings above the permitted yield, hence the arbitrage rebate payment.
Monthly financial reports were presented: education fund cash balance at the end of May was $5,515,188 and the operations fund cash balance was $2,165,300; year‑to‑date expenditures and interest earnings across several banks were also summarized. The board accepted the financial reports and claims.
