School District of Waukesha News
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The Waukesha School District's Trust Fund is the Poster Child Nationwide |
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Saturday, 27 September 2008 |
Timeline of OPEB Trust
10/1/08 Update: Districts Sue for $200 Million lost
updated 4/28/08 Director of Business Services/Comptroller Erik Kass is Leaving the District This follows the retirement of Superintendent David Schmidt announced at the end of January.
May 10, 2006 Board Approved OPEB Trust Fund
Aug 9, 2006 Board approved a $15.7 million borrow for Trust Fund & approved taxing for it. The $15.7 million was to be used as collateral for the Trust Fund.
Nov 14, 2006 Erik Kass (SDW), David Noack-Sr VP, Stifel, Nicolaus & Co Inc, Jane Russell, DEPFA Director (overseas investment house) present Taxable Bond Structures at 5th Annual Great Lakes Public Finance Conference in Illinois.
Nov 27, 2006 Board authorized up to $90 Million in bonds and the purchase of one or more credit linked secured notes by the trust. David Noack, of Stifel Nicolaus is financial advisor.
Jan 10, 2007 Erik Kass, Director of Business Services School District of Waukesha was appointed trustee for the Trust by the School Board.
Mar 29, 2007 Erik Kass (SDW), David Noack-Managing Director Robert Baird & Co present The Path to Bonding for Your OPEB Liability in Florida.
May 9, 2007 Finance and Facilities reported to the board that the district has invest $65 million of a possible $195 Million. This allows them to invest more in the future.
Nov 14, 2007 Finance and Facilities reported again that the trust has a total investment of $65 million.
Jan 9, 2008 The School Board approved a $40 Million borrow for the Trust Fund & approved taxing for it. The $40 million would be used as additional collateral and potentially to payoff the original borrow done in August 2006.
Feb 7, 2008 The School Board and administration were notified that the district owes $13.3 Million in additional collateral (cash) or face default on their $65 Million Trust fund due to plumetting value.
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If It Seems Too Good To Be True, It's Usually a Bad Deal |
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Thursday, 10 July 2008 |
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And NOW THE SCHOOL DISTRICT IS LOOKING TO SUE over the trust fund not really being as safe as they thought.
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Thursday, 19 June 2008 |
 UPDATE: Just how much will this affect the students? The trust fund is now making less money than it costs for the interest in the borrow--and it still doesn't include the $12 Million lost in value that taxpayers will need to pay if it doesn't return to its original $50 Million value.
The district trust fund is barely earning enough money to pay the interest on the $15.7 million non-referenumdum borrow it did two years ago. This doens't include the interest payment for the $50 Million that the trust borrowed and nor does it cover any of the the shortfall in value of the trust fund. In May, the value of the trust fund was still at $38 Million instead of the $50 Million real dollars borrowed. READ this as a $12 Million loss until or if it ever recoups to its face value. If the school board must borrow money to shore this up, it will be a total loss to taxpayers--who by the way, are on the hook for any money lost from this scheme and the early retirement benefits we still have to pay. As taxpayers, we hate paying twice for cushy benefits. And has any one really questioned why administration is jumping ship and the board just sits there and says,'don't worry about it, it will be just fine.'? If this were a private business, heads would be rolling--right up to and including the board. The state refuses to audit this for various reasons, so calling again on Bill Kramer to seek an audit, is pointless. Criminally, don't know, we aren't lawyers and this kind of stuff usually doesn't go anywhere. JUST WHAT OTHER ALTERNATIVES ARE THERE FOR THOSE THAT PAY THE BILLS OTHER THAN BEND OVER AND GRAB YOUR ANKLES?
$1.3 Trillion in losses do to bad loans--Royal Bank of Scotland Group Plc predits the worst is yet to come
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Just Read Between The Lines |
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Friday, 06 June 2008 |
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Freeman article today leads one to believe Todd Gray is our new Superintendent. By the way, he is the financial guy--hopefully a new direction for the district.
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Interviews Done, School Board to Decide Thursday |
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Wednesday, 04 June 2008 |
The citizen committee finished interviewing the two superintendent candidates. It was requested that all discussions that took place during the last two days were to remain confidential (kind of like a closed session of a sub-committee of the board with an agenda that never got posted). (Some wiseguy in the group questioned me with "Since when do you follow instructions?" Must know me too well.)
Being respectful of the request to the best of my ability, I am issuing the following statement:
Both candidates had their strengths and their weaknesses. One had a very strong financial background, the other had was more of a people person. Both had a good grasp of the impact of state laws on the budget. Both were motivated to raise the standards of education our children were receiving by thinking outside the box and being creative. I could go on, but I think I would only be restating what Dan Warren said, "these are two very qualified candidates".
In my mind, the decision the board must make Thursday night will be a tough one. The board must, in a very large way, decide what direction it wants to go over the next several years. The board should have a much better feel for each of the candidates that we got with an hour each (without any background prior to meeting with the candidates).
That being said, the success or failure of either candidate is directly related to the board, the board's goals and just where the board wants to lead this district and the ability of each candidate to deliver on what they stated during their respective interviews.
I am thankful for this opportunity to meet with the candidates.
Chris Lufter, President
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Monday, 02 June 2008 |
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The WTL has been invited to meet with the two superintendent candidates. We will post questions and answers after the interview with the second candidate. We fully believe it would be unfair to publish one interview before hearing from the second candidate. Just as it would be unfair to publish a bid contract before receiving all of them.
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This Makes It Easier to Understand |
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Thursday, 22 May 2008 |
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Here is an article that shows exactly what happened with the trust fund for the School District of Waukesha--how it works and how Moody's screwed up the ratings of the bonds. The district did invest in AA bonds but they really should have been rated a lot lower. The current Trust Fund Asset sheet shows the value of the bonds greatly depreciated. According to the flow sheet in the article referenced above, it will take another school district borrow to shore up the fund to its original value. Thus the fund will have to spend more money on increased interest payments on the school district loans when the second borrow is intiated. Currently, the fund needs to earn $875,000 PER YEAR to make the interest payments on the first borrow.
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The Freeman Takes On the School Referendum |
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Friday, 16 May 2008 |
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And does it very well.
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WTL's Input for the New School Superintendent |
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Thursday, 15 May 2008 |
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The WTL's Jim Strand attended one of the listening sessions for the selection of the new Superintenedent. In addition, we have submitted the response form with our input. Additionally, Alicia Silva attended one of the parent sessions. Both said that they themselves and others that attended their sessions wanted to have a superintendent that had a strong financial background. We sincerely hope that the board listens.
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