LINN  — Linn R-2’s bond sales for the classroom additions project ended on July 1 with approximately $10,438,000. Superintendent Bob James anticipates earning a little more than $40,000 per month in interest (5.21%) while the total balance remains, which could push the district’s resources to between a conservative $11.1 million and $11.5 million — with strategic investments.

James said the district needed a bond payout draw schedule from Navigate to maximize the financial return.

“We will begin drawing those funds down in smaller increments as we pay preliminary costs associated with planning, designing, and managing the bond projects,” said James. “The majority of the funds will remain through the spring of 2025 and will likely yield a significant sum to be added to our project resources.”

James said he’s pleased with the projected revenues that should be available in a draw-down schedule. “I’ve been very happy with Stifel,” said James. “We’re still on track to break ground next spring.”

The superintendent added that surveying had been done over the preceding weeks, and several meetings were held to coordinate contractor schedules. Topography and marking out utility lines were also done.

With the completion of track repairs and the fence, James said new lights should arrive this week. He noted that several people asked about the new playground and wondered why it wasn’t done first. James explained there is a difference between a lease-purchase agreement and a bond. “The timing for scheduling is very different,” he said. “With a lease-purchase agreement, we’re able to pull the trigger a lot faster.”

Regarding the use of the 2012 building code, James said he and Board President Dr. Shawn Strong made a recent presentation to commissioners. “They were generally receptive but had to run it past their legal counsel,” said James, noting he expects to receive an opinion from Prosecuting Attorney Amanda Grellner, who represents Osage County in this matter, on whether it’s legally possible to use that building code.

“So, we’re thinking it’s likely?” board VP Mark Baker asked.

“Yes,” James replied. “They would essentially be giving us an exception.”

In related news, board members selected Engineering Surveys & Services (ES&S) of Columbia to conduct geothermal material testing on campus as part of the classroom additions project.

“One item that I wanted to point out is that even though ES&S’s proposal for the geotech is higher than the other two,” said James, noting the firm recommended an additional four boring locations, primarily in the parking lot and roadway drives. “We can confirm if the Structural and Civil Engineers require these locations. If they are not, we can have ES&S revise their proposal accordingly.”

Navigate Building Solutions Senior Project Manager Matt Nigh told James that (ES&S) was identified as the most responsive, qualified, and responsible submitter in the request for proposals process.

James noted that ES&S worked with North Calloway and Cole County with good results.

• Board members agreed to continue with the current tuition rate of $2,000 for the first student and $500 for each additional student. The board made the change last November (lowering the rate from $3,000/$1,000 as approved in July 2023) for the 2023-24 school year. James told the board that tuition requests have increased, with as many as 10-15 students or families requesting information and applications.

“I do not have any data that the rate has been or will be detrimental, but anecdotally, I believe that the rate is perceived as reasonable, considering the expressed interest,” said James, noting that registration activities will provide a more accurate number. “Higher tuition rates will discourage them; lower will encourage them.”

Board member Brad Peterson asked about the unrealized funding between the current rate and the amount the school could charge for out-of-district tuition. “Five students is one thing, 10 students is another,” he said, noting that if the district absorbs too much, it would be detrimental to the district.

Baker agreed, noting that if there were 25 students, board members might need to revisit the issue.

“It’s costing the taxpayers a lot of money to pay for that,” Peters said.

“There will be a breaking point where we have to adjust tuition because we’ll have to adjust staffing and resources,” said James.

“So, we’ll know the number after school starts,” Peterson said.

“Yes,” said James, who will monitor the effectiveness of the lower tuition rate as the year progresses.

• Food Service Director Kelley Crouse announced in a letter to the administration that meal prices will not need to be increased for the upcoming school year.

“Based on the financial health of our food and nutrition budget from the 2023-24 school year, I am pleased to report that there is a positive balance that enables us to maintain the current pricing without any need for increases,” she wrote.

Furthermore, she recommended that the district continue its partnership with Central Dairy to supply milk and dairy products. “Central Dairy has consistently demonstrated reliability and responsiveness in meeting our needs, including the willingness to address any expired product or errors promptly,” she noted.

Board members agreed and voted to maintain current prices for student and adult meals, as well as milk through Central Dairy.

“If we can shield our families from a price increase if at all possible, I’d like to do that,” said James.

“It’s nice to have one thing that’s not going up now,” Baker added.

• The district’s annual tax rate hearing will be held at 6:30 p.m. on Aug. 22, with the regular meeting to follow immediately.

• The school has a checking and investment balance of $3,917,407.40, including investments of $488,396.55 through Mid America Bank.

REPORTS

In his report, James noted that the district’s preliminary Annual School Board Report (ASBR) shows that the school is ahead of budgetary predictions.

“That’s partially intentional because I’m constantly overestimating expenditures and underestimating revenues,” said James, noting his prediction of a 32% fund balance looks like it may be closer to 37% by the end of the fiscal year.

• In continuing to develop and maintain the district’s culture, climate, and relationships, James told board members that he is planning a back-to-school barbecue, and hopes to start the school year on a positive note.

He was also pleased with the way students behaved and performed in 4H shows at the Osage County Fair.

• James noted he is exploring the cost of offering part-time positions with benefits for non-certified staff, including secretarial, kitchen, maintenance, and custodial positions.

James added he is still seeking a second ELA teacher. Until then, he said teachers will pick up the slack, but class sizes won’t be too big. Some middle school teachers are certified to teach ninth grade and will cover some of those classes.

“So there’s a plan to absorb it if we do not hire anyone else?” board member Brett Phillips asked.

“Yes, and it does not affect our master schedule,” said High School Principal Erin Sassmann. “Will we need to fill it eventually? Absolutely, but we can absorb it this year.”

She added it’s not ideal, but the district can get through the upcoming school year. “I’m really proud of our English department,” Sassmann added. “They do a great job covering whatever needs to be done.”

“We’ll keep it open all year, and if we can snag someone along the way who is qualified and interested, we’ll fill it immediately,” James said. “We do not intend to reduce our high school staff to one English teacher.”

Linn also needs a new Business teacher. Sassmann noted that a long-term sub is interested in covering the class and has the principal’s recommendation. “I think she’ll do a phenomenal job,” Sassmann said.

• In July, the school offered exchange days for teachers who needed to swap professional development for a work day off in the spring.

• He also continues to focus efforts on district and campus improvement plans.

• James reported that culvert repairs on CR 801 mean the road is closed. The school has posted “No-Thru” signs and sent out text alerts to notify patrons.

• Work continues on the bond and lease.

• Summer camps and conditioning, along with club football, have been a good use of the facility. “It’s nice to see people coming out after dead weeks,” said James.

Facilities Director Cliff Wilson told the board that everyone is doing a great job working together as a team.

• The pump seal for the Geo system was installed and was working great, but it began leaking again last week. Environmental Engineering planned to return to assess the situation further.

• Wilson noted he’s still waiting on the motors for the fans in the field house, which were still being manufactured at the time of the meeting.

• Unscheduled maintenance and repairs include an HVAC heat recovery unit in the elementary that failed due to a faulty BS Box, which regulates the system. Wilson said he’s received a repair bid of $12,857, including installation.

James recommended maintaining a traditional HVAC system in the classroom addition project. While the upfront cost is higher, maintenance is less expensive.

• Facility and grounds maintenance continues with lots of grass-cutting and landscaping improvements.

• Summer projects have gone according to plan, for the most part, but the French drain project between the track and baseball field was postponed due to the amount of recent rain. Wilson said he plans to stripe the parking lot soon as it makes the campus more aesthetically pleasing.

• Wilson told the board he is working on the lead water-testing reimbursement process with the Missouri Department of Health & Human Services (DHSS).

In the summer school report, it was noted that enrollment included 290 K-8 students, and in grades 9-12, there were five students in Life Skills and 14 in Credit Recovery. However, 13 students were dropped from the program, four due to behavioral issues, and the remaining students choosing to withdraw. 

• Some sort of disciplinary action was necessary every day, but the last.

“It was another amazing summer with a lot of learning and fun,” said Summer School Principal Sharlet Peterson. “It has been a pleasure being the summer school principal; thank you for all the great years.”