“It is my recommendation that Katahdin Trust Company would be a worthy RSU 39 banking service,” said Superintendent Timothy Doak. “There were four banks that responded: Aroostook Federal Savings and Loan, Katahdin Trust Company, Machias Savings, and TD Bank. The proposals were all very competitive. Katahdin had a 1.25 fixed-rate of interest over three years. Other banks offered lower interest rates, but required a higher balance.”
“It was a pretty intense process,” added Bouchard, “but because of the fixed rate of interest that Katahdin was offering, there was no comparison. In addition, we are going to be able to roll over the High School and Nutrition account to the Katahdin account and leave the other accounts where they are and spread it around the community. The High School account, which is the largest, is coming to this program. The interest on that account will be grouped in with ours, so we will get the benefit of their balance.”
Bouchard explained that, with TD Bank, any accounts with less than $1.3 million do not collect interest, as those funds are absorbed into the bank’s service charges.
“The High School balance is way below that threshold,” said Bouchard. “There are no service charges for the High School account, but there is no interest either. With this new proposal, there is no minimum, so we’re going to start earning interest with the first penny.”
The business manager’s financial report for the first quarter of fiscal year 2016, which includes July, August and September, assured the RSU 39 board that the budget is stable.
“Revenues are on track,” said Bouchard. “If you compare them to where they were last year, we are just slightly below. The General Fund is just slightly higher, primarily as a result of Adult Ed. Additional money has to be put in the Adult Ed program every year, which didn’t occur until the second or third quarter of last year. I put it in the next year’s first quarter, which makes it look better, but in the end it will be the same.”
Bouchard explained RSU 39’s federal revenues to the board.
“$15,702 was received from the prior year. It was deposited into the Title 1 Fund, and I moved it to another place so it could be separated. It looks like a negative, but will disappear once we see more revenue on the federal side.”
Both state and federal revenues, according to Bouchard, are typically low during this time of year because, despite the existence of activity, the state usually allows the school board to “start invoicing around October or November.”
RSU 39 expenditures are also in line with the budget.
“We’re slightly ahead of where we were a year ago,” said Bouchard. “We’re essentially 25 percent through the year, so when I look to the percent remaining, I’m looking for something 75 percent or better, and that tells me we’re on track. The only item below that is Facilities Maintenance; and it’s just below at 74 percent. That is primarily because of the summer maintenance, and because we do our bulk buying for janitorial supplies in July, so this will even itself out throughout the year. Aside from that, all other accounts are in good shape.”
