Union Bank in Pemberville is again offering the highest interest rates for the Eastwood school district’s deposits, according to the school district’s administration.
“They are significantly lower than they were in 2006 but better than all the competitors,” Brent Welker, school superintendent, said in his weekly newsletter.
The school board has approved depository agreements with banks every two years.
Two years ago, Dave Michel, district treasurer, recommended the board lock into a fixed rate agreement that paid the district about 4.8 percent on its deposits.
“That turned out to be an excellent choice since rates are currently well below those levels,” Mr. Welker said, adding Mr. Michel again this year sent out letters to numerous local and regional banks to request deposit proposals.
Mr. Michel is projecting a drop of about $100,000 annually on the district’s deposits over the next two years.
That may pale in comparison to the loss the district is bracing for from the state.
Mr. Welker said the board and administration anticipate one round of state budget cuts to hit school districts shortly after Christmas and another in the spring.
“The total impact is unclear at this time” he said. “In order to balance the (state) budget districts could see a loss of over $840 per pupil in (fiscal year) 2010 and $870 in 2011. As we have mentioned before, we are planning budget reductions for the next two fiscal years as well as this one. Given the fact that we are speculating on the size of the reductions in state aid, we have begun a prioritized list of reductions. The larger the cuts from Columbus, the deeper the reductions at Eastwood.”
As of last week, the administration received more than 500 surveys from residents responding to its request for feedback on a bond issue that was defeated in November.
Eastwood voters rejected a 5.8-mill, 28-year bond issue to fund the local share of construction costs for a new building on the central campus that would have housed kindergarten through eighth grade classes.
The bond would have leveraged funding from the Ohio School Facilities Commission.