A different approach
H-M-S opts for new way of paying for natural gas
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To help manage costs for purchasing natural gas, the Hartley-Melvin-Sanborn Community School District is joining a statewide government risk pool program.
The school board on Monday authorized the district to enter into an agreement with the Iowa Local Government Risk Pool. The purpose of the program is to "transfer risks of increases in natural gas costs due to weather-driven demand and other market forces away from the school district."
H-M-S will join the pool on Jan. 1, 2024. Superintendent Patrick Carlin recommended doing so now to take advantage of the current natural gas market and warm weather.
H-M-S will pay a premium of $30,246 for the six-month period that ends June 30, 2024. Another $61,457 will be paid for a 12-month agreement that begins July 1.
Premium amounts are based on 125 percent of the district's historical usage. Carlin said that amount is $65,969.
"[The premium] is actually cheaper," Carlin noted.
The premium is intended to cover the district's natural gas costs for the agreement period. If the amount actually paid for gas is less, the pool is required to refund a portion of the excess. H-M-S could be assessed an additional premium if actual costs are higher.
According to discussion, Hartley and Sanborn municipal utilities will continue to provide natural gas for district buildings. H-M-S will submit invoices to the Iowa LGRP, which will reimburse the actual costs.
"We pay the premium from Management and what is spent from the General Fund for gas will be reimbursed. It is actually a wash," Carlin noted.
Board President Scott Vollink questioned having to pay a large premium in advance.
"We are giving them $60,000 interest-free to use it as they wish," he noted.
Carlin responded that the agreement provides the district with predictability and allows it to transfer costs from the General Fund.
"It sounds like it gives us more flexibility," said Board Member Becky Stoltz.
• SBRC application, other business
H-M-S will apply to the School Budget Review Committee for additional spending authority for open enrolled out students not included in last year's headcount. Based a count of six students, the district is eligible for $46,624 in spending authority.
H-M-S will also apply for $13,299 in spending authority for English learner instruction beyond five years. The district has an eligible student count of eight.
In other business, the board approved requests from H-M-S Parents in Education (PIE) and the high school business club to conduct fundraisers. Donations from the Athletic Booster Club for equipment and one designated for band uniforms were accepted.
The resignation of Darcy DeBoer as a P-K special education associate was accepted. Contracts were issued to Keith Rohrs as a custodian and bus driver, Dawson Schiphoff as head varsity baseball coach, and Julia Storm and Tricia Zimmermann as assistant high school volleyball coaches.
