Fayette school board (Sept. 17) 9.26

Written by David Green.

In July, Gorham Fayette Board of Education members discussed purchasing bonds to pay off the cost of the newer gymnasium, using money from the contamination settlement with DH Holdings.

At the Sept. 17 meeting, board members heard a second proposal for the settlement money.

District treasurer Angel Adamski said she spoke with a bond counsel who suggested the best approach might be to place the money in a reserve account dedicated specifically for repayment of the construction loan.

The 30-year levy is due to expire in 2028 and board members have stated their intent in the past to use settlement money to help pay off the loan and give taxpayers a break.

Interest earned from cash in the reserve fund would stay in the fund and interest rates are not limited by IRS regulations. With the plan discussed in July—known as bond defeasance—the rate is limited to 4.389 percent. Any amount greater than that is automatically taken by the IRS.

The reserve fund would be set up for semi-annual bond payments instead of collecting money from taxpayers.

One consideration with the reserve fund is the capability of using the fund for general operating expenses, Adamski said. Although the money is earmarked for the gymnasium payments, it could be used for other purposes.

Trustee Fred Stockburger expressed concern about the ability of the school board to borrow from the reserve fund.

“It’s not fair to the taxpayers to place it in a fund that could be borrowed from,” Stockburger said. “If you can touch it, someone will.”

David Brinegar shared his concern.

“If somebody [a future school board] did take the money,” he said, “the county auditor would have to start levying the tax again. I don’t like that.”

The two trustees suggested obtaining a second opinion on the issue.

“She gave us a reason not to do it—you can touch it,” board member Terry Kovar said about the bond counsel.

The board tabled motions to create a reserve fund and transfer $1.5 million to the new fund.


  • Front.cowboy
    A PERFORMER named Biligbaatar, a member of the AnDa Union troupe from Inner Mongolia, dances at Stair District Library last week during a visit to the Midwest. The nine-member group blends a variety of traditions from Inner and Outer Mongolia. The music is described as drawing from “all the Mongol tribes that Genghis Khan unified.” The group considers itself music gatherers whose goal is to preserve traditional sounds of Mongolia. Biligbaatar grew up among traditional herders who live in yurts. Additional photos are on the back page of this week’s Observer.
  • Front.base Ball
    UMPIRE Thomas Henthorn tosses the bat between team captains Mikayla Price and Chuck Piskoti of Flint’s Lumber City Base Ball Club. Following the 1860 rules, after the bat was grabbed by the captains, captains’ hands advanced to the top of the bat—one hand on top of the other. The captain whose hand ended up on top decided who would bat first. Additional photos of Sunday’s game appear on page 12 of this week’s Observer. The contest was organized in conjunction with Stair District Library’s Hometown Teams exhibit that runs through Nov. 20.
  • Front.chat
    VALUE OF ATHLETICS—Morenci graduate John Bancroft (center) takes a turn at the microphone during a chat session at the opening of the Hometown Teams exhibit at Stair District Library. Clockwise to his left is John Dillon, Jed Hall, Jim Bauer, Joe Farquhar, George Hollstein, George Vereecke and Mike McDowell. Thomas Henthorn (at the podium) kicked off the conversation. Henthorn, a University of Michigan–Flint professor, will return to Morenci this Sunday to lead a game of vintage base ball at the school softball field.
  • Front.cross
    HUDSON RUNNER Jacob Morgan looks toward the top of the hill with dismay during the tough finish at Harrison Lake State Park. Fayette runner Jacob Garrow focuses on the summit, also, during the Eagle Invitational cross country run Saturday morning. Continuing rain and drizzle made the course even more challenging. Results of the race are in this week’s Observer.
  • Front.bear
    HOLDEN HUTCHISON gives a hug to a black bear cub—the product of a taxidermist’s skills—at the Michigan DNR’s Great Youth Jamboree. The event on Sunday marked the fourth year of the Jamboree. Additional photos are on page 12.
  • Front.crossing
    Crossing over—Jim Heiney was given a U.S. flag to carry by George Vereecke (behind Jim in the hat), turning him into the leader of the parade. Bridge Walk participants cross over Bean Creek while, in the background, members of the Morenci Legion Riders cross the main traffic bridge on East Street South. Additional photos appear on the back page of this week’s Observer.
  • Front.hose Testing
    HOSE safety—The FireCatt hose testing company from Troy put Morenci Fire Department hose to the test Monday morning when Mill Street was closed to traffic. The company also checks nozzles and ladders for wear in an effort to keep fire fighters safe while on calls.

Weekly newspaper serving SE Michigan and NW Ohio - State Line Observer ©2006-2016