Health & Fitness
School Facilities Bond - Issue 81 Finances FAQs
Voters who are following the school facilities debate have likely heard much talk of bonds, millage, state funding and the like. Let’s try to simplify things with the following Financial FAQ’s:
What is the cost of the plan? The Lay Facilities Committee produced a plan that rehabs/rebuilds eight of the eleven school buildings and sets a budget of $234 million.
Is it true that Issue 81 addresses the high school and two middle schools? Yes, Issue 81 will fund Phase I. This will be a complete modernization of Heights High, Monticello and Roxboro Middle Schools.
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What is the cost of Phase I? The budget for Phase I is $153.6 million.
I’ve been hearing a number of $134.8 million? This is the amount that is requested from homeowners through a voted bond issue. It will cost homeowners about $17 month per $100,000 of assessed home value. Most of the balance is financed with a bank loan.
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How long will the bond last? The proposed term of the bond is 38 years.
If it’s financed, isn’t the cost really a lot higher? It’s similar to a mortgage as a reference. The $17/month per $100,000 estimate will fund the principal and interest.
Why is it phased, why not do it all at once? The District cannot raise the entire amount to cover this plan in one offering.
Why does it cost this much? Our district's facilities are complicated due to age, multiple additions, and restrictive sites. Like an old house, all of the core systems (heating, electrical, plumbing, security, etc) must be replaced. We want to do it right for the next 50 years, not a patch job.
Is there something comparable? Lakewood is a comparable District, and they will spend more than $220 million to complete their plan. Part of the reason their plan costs less is that they started ten years ago, when everything cost less.
Was the committee concerned about cost? Of course, we are all taxpaying citizens. However, our first priority was to deliver a project that was done correctly. We don’t want to recreate the problem of the 70’s.
Why didn’t you address the elementary schools in this plan? Our comprehensive plan does address the elementary schools, but we have to make smart choices due to the costs. The high school is, by far, the costliest building to maintain. It makes a lot of sense to fix it and provide near term value to our entire district. We stand by our decision to consolidate the middle schools for better delivery of programs as well as generating some ongoing operating savings.
What’s the rush, can’t we do this plan next year? As it relates to the current Lay Facilities plan, the answer is no. Provisions in state law will limit the District to a nine percent borrowing limit in 2014 and beyond. Simply put, our borrowing capacity drops to $90 million next year, $44 million less than our current bond issue. Fewer available dollars means portions of our plan would be pushed several years into the future. Every year we delay, we have to correct for inflation.If we exceed our state debt limits, how do we ever fund the elementary schools? Great question! The state has programs through the Ohio Facilities Construction Commission that allow districts to finish their projects. Our plan seeks approval into the State’s Classroom Facilities Assistance Program (CFAP). Approval into this program frees up State matching funds which are estimated to be around $23 million. The balance would be raised with a much smaller bond issue.
How can I be sure that this is true? Our phased master plan and relationship with the OFCC is very similar to what Lakewood has nearly completed. That community supported their plan and is now in position to finish the final phase with State support. They will have totally modernized buildings that put the aging infrastructure issue to rest. Take a look http://lakewoodcityschools.org/dept/17/.
What happens if the bond issue fails? This plan puts us on a good path to both modernize and right size our school facilities. Operating eleven school buildings that are aging and inefficient puts pressure on ongoing operating costs that are also tax funded. Failing this bond, at minimum, delays by several years any chance of completing a project of this caliber and quality. These issues are not going away and must be addressed.
Final comment? As community members who authored this plan, we have dedicated thousands of volunteer hours to this task. We hope that you take the time to really learn about this issue, including taking a tour of the high school and middle schools. Sometimes a firsthand look is worth a thousand words!