Fiscal year ends better than expected

The Bloomfield School Board sailed through several items on their agenda Monday night at their regular meeting including the awarding of a contract to Peters Supply Company of Marble Hill to replace heat and air in a house owned by the School District. The board also heard form Dennis Boggess of Bagby Investments in Dexter about changes in IRS regulations concerning 403B annuity funds.

Superintendent Nicholas Thiele told the board he received two bids for replacing heating and air-conditioning at the "Lane house" which is owned by the district. Thiele proposed that the house be renovated for use by his family. Thiele said at the last meeting he would enter into a rental-lease agreement with the district for use of the house. Thiele was hired from the Caruthersville School District. The job at Bloomfield required his family to relocate. The two bids were: $5,500 from Air Tech heating and Air of Bloomfield and $5,400 from Peters Supply Company. The board voted unanimously to award the contract to Peters Supply Company.

Thiele also told the board that the ending budget balances for the 2007-2008 fiscal year were better than anticipated. At the last meeting he distributed information estimating that the district would finish the fiscal year with $406,384.92 in their account. The revised preliminary actual total was $45,052.43. Theile commended the administrators for cutting spending at the close of the fiscal year, and told the board the balance was "a little better than we thought."

The board also voted unanimously to accept the resignation of Dr. Sheila Perry. Perry was the superintendent at Bloomfield, but was reassigned to a teaching position for he 2008-09 school year. Thiele said she was retiring. There was no discussion on the resignation.

Boggess opened the meeting with a presentation on changes in tax law concerning the district's 403B retirement plan. Boggess said the IRS was increasing scrutiny and auditing on 403B plans and was making the regulations more like 401K plans.

He said it would require a great deal more paperwork. He said his company, Bagby Investments, could provide the paperwork and help the district meet the new guidelines. He said Bagby works through Security Benefit,a Midwest company. Security Benefit has the endorsement of the Missouri State Teacher's Association. Their program is geared specifically for school districts and 403B plans.

Boggess said these new regulations are to be in effect by January 1, 2009. He said it took about 90 to 100 days to get the plan in place and the Bloomfield district needs to begin the process as soon as possible. He told the board there was no cost to the district, as long as Security Benefit acted as a single vendor.

Boggess was questioned about whether employees with current annuities with a different company could keep those plans.

Boggess said they could, as long as the other company chooses to participate. He did add that if the company chose no to participate, then they could not continue with that company.

Board member Bill Robison asked Boggess, "Is this a service, or a product?"

Boggess said it was a service, but also a product at the same time. He said the service was free only if the company acted as a single vendor. There is a fee, based upon participation for those with multiple vendors.

Thiele said he contacted Bagby because the district needs something in place by January 1, 2009 and that the current staff could not keep up with the new paperwork required.

Boggess proposed that they find out how many employees participate in a 403B plan. He was asked whether he would be willing to meet with them at an upcoming teacher conference to discuss the plan and answer questions. He said he would.

The board took no action on the proposal, but agreed to take up the issue at their August meeting.

Other action by the Board:

* The board voted 7-0 to approve the School Core Data;

* Set August 11, 2008 for a tax rate hearing to be held from 6:45 p.m. until 6 p.m. in the board room;

* Approved the LAB Gifted Program curriculum guide;

* Heard a review of the safety inspection for M.U.S.I.C. insurance;

* Approved membership in the Missouri School Board Association for the 2008-09 schoolyear;

* Voted to accept the bids for milk and bread contracts through the Stoddard County Activities Association. The bread contract is to Interstate Brands Sales Corporation and the milk contract to Prairie Farms;

* Approved an increase in the amount paid by the Richland School District for transporting students to vocational training in Sikeston during the school year. The amount was $3,500 and will go to $4,000;

* Increased the mileage reimbursement for parents of students with special needs. The old mileage rate was 25 cents per mile and it will go to 40 cents per mile.

* Approved revisions in the bus driver manual. The changes concern providing drivers for extra curricular activities.

The board adjourned into executive session following the meeting. No action was taken following the executive session.