Board of Education borrows money for short-term use

Posted 10/12/10

LOXLEY, Ala - A resolution to borrow $35,000,000 from a short-term line of credit at Regions Bank in Mobile was unanimously approved and passed by the Baldwin County Board of Education at a special meeting Tuesday afternoon at the Loxley satellite …

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Board of Education borrows money for short-term use

Posted

LOXLEY, Ala - A resolution to borrow $35,000,000 from a short-term line of credit at Regions Bank in Mobile was unanimously approved and passed by the Baldwin County Board of Education at a special meeting Tuesday afternoon at the Loxley satellite location.

Dr. Alan Lee, Superintendent of Baldwin County Board of Education, assured the board this money isn’t being used because of proration or a financial deficit.

“The Board of Education has a line of credit so there can be enough money in the bank to pay the bills until federal, state and county checks arrive. In a robust economy there is generally enough dollars on hand to make ends meet but this fiscal year and the two preceding it, we established a line of credit with the bank and have pulled from it when cash on hand was low,” Lee said.

According to board documents, the system obtained a Revenue Anticipation Note for use during the current fiscal year and has worked well to the board’s benefit during time of cash flow shortage. This resolution will allow the Board President and Superintendent to borrow funds as needed each month to accommodate cash flow shortages.

If other documents are required, they will be prepared by the bank and reviewed by external legal counsel.

“As soon as the anticipated revenue arrives, the line of credit is paid back. We are expecting federal checks in excess of $10 million to arrive in a few weeks, but until those funds are in the bank, we’’ll have to draw from our line of credit, a process that will begin in a few days,” Lee said.

Because of the revenue generated from the penny tax in March, Lee said the board is anticipating a positive balance in the general fund and normally the system is in an excellent financial position, but with the downturn in the economy the last two years, it is made it difficult to maintain positive balance.

In other board business, three high school principal positions were approved. These spots were left vacant when the three Executive Principal positions were created at the beginning of the school year.

Meredith Foster Horton of Spanish Fort will take over at Daphne High School for Don Blanchard, where she has been Assistant Principal since 2008. She had previously been Assistant Principal at Murphy High School in Mobile in 2007-08 and Personnel Administrator/Coordinator for Federal Transition to Teaching Program for Mobile County Public Schools Human Resources from 2003-2007. From 1998-2003, Horton taught 8th grade Language Arts in Hoover City Schools in Birmingham.

Edmond Danny McDuffie of Foley will fill the spot at Foley Middle School left by Branton Bailey. McDuffie is currently Assistant Principal at Summerdale School and has been there since 2007. Receiving a B.S. in Elementary Education and a Master’s degree in Educational Development from the University of South Alabama, McDuffie has taught in elementary and middle schools in Baldwin County since 2001.

From 1997-2001, McDuffie worked for Boeing Aircraft Company in Saudi Arabia where he was instructor for the Royal Saudi Air Force in the areas of English Language, safety and flight control systems. A member of the United States Air Force from 1981-92, McDuffie was a supervisor in charge of training on flight control systems, safety and crash recovery at Elmendorf AFB, Alaska.

Lastly, Patrice Wolfe of Daphne takes Suellen Brazil’s place at J. Larry Newton School. Wolfe has been Assistant Principal at W.J. Carroll Intermediate School this year and since 2006 has been Assistant Principal at Foley Middle School, Blount High School and O’Rourke Elementary School in Mobile.

Additionally, Wolfe taught elementary and middle school in Mobile and Sumter County from 1994-2004 and has had extensive professional development training.

The board also passed a motion to approve a new intercom system at Fairhope High School. The $66,765.75 bid from Ideacom on Pollard Rd. in Daphne was approved and includes a base bid of $55,818.35 plus $10,947.40 for three additional nodes for the intercom.

According to the proposal, it was determined that it was no longer cost-effective to continue to repair the intercom system and because of the safety and security of the students and staff, and to facilitate prompt action, quotes were requested from several vendors providing the services and equipment needed.

It was also determined that with the addition of three nodes, the new system could utilize existing fiber between buildings that would reduce lightning damage and down time for maintenance and repair.

The other two bids were from Fire Control Systems, Inc. for $77,450.00 and Hunter Security for $88,100.00.