February 7, 2024
By: Dwayne Page
Will the Board of Education partner with the county in funding construction of a new 800 student Pre-K to 2nd grade elementary school to replace the existing Smithville Elementary School complex?
That issue is on the agenda for discussion and possible action during Thursday night’s monthly board of education meeting which will be held at 7 p.m. at DeKalb County High School. A workshop will be held prior to the meeting at 6 p.m.
Three months ago, members of the county commission and board of education met together in an informal workshop setting to work toward some funding arrangement on the project. In October 2022 architects estimated the cost to build a new Smithville Elementary School was $46,199,875 at that time.
According to County Mayor Matt Adcock and the county’s fiscal agent Steve Bates, a $40 million school construction project could be funded without a property tax increase or even a wheel tax, using available local option sales tax funds and interest income on bond proceeds, but only if the school board is willing to make a one-time contribution of two million dollars from its $10 million fund balance reserves. The county would also need a commitment from the cities and school board to extend the existing sales tax agreements between the parties which expire July 16, 2037. Under those agreements, the cities turn over to the county for schools a greater percentage of their local option sales tax collections than they would otherwise be required to do. That money goes into what is called the Local Purpose Tax Fund for Schools to help fund school operation and debt.
“The best-case scenario would be to extend the sales tax agreements between the county, cities, and school board (beyond 2037) in order to do 30-year bonds but do an emission of bonds to build the school and amortize it over a 15-year period with a $ 2 million contribution from the Board of Education from their fund balance together with a contribution from local purpose (local option sales tax fund),” explained Bates.
“Under this plan, we (county) would take $5.6 million (from local purpose/sales tax fund) together with the school’s $2 million contribution and together with bond proceeds issue an amount of bonds to build the school. By amortizing it quickly over 15 years then it opens up future borrowing capacity for another school to be built once that issue is paid off,” said Bates.
The Board of Education has been reluctant to make a $2 million commitment from the school district’s fund balance because of other needs including some that are state mandated which either are being or may have to be financially supported locally from the fund balance (reserves).
“We have concerns about them (county) asking us to contribute $2 million from our fund balance (reserves),” said Director of Schools Patrick Cripps in November. ” Right now, we (school district) have close to $9.9 million in our reserves (fund balance) and that is healthy but when you run a budget of up to $29 million then $9 million is not a whole lot of money and to think that we could possibly be pulling $2 million out of that and suddenly be down to $7.9 million left in reserves is a cause of worry for me. We (school district and school board) have been good stewards of the money and because of that we have been able to give pay raises to our employees without having to ask the county commission for more local funding to do that and I would not want to harm that ability. I would like for us (school district) to be able to take care of our business with our money and not have to ask for more from the county,” said Director Cripps.
“There are also mandates we have to meet which are not funded by the state,” Cripps continued. “Right now, we are able to cover those (costs) with some of the grants we have been able to write because of COVID but those end this year so we will have to come up with additional money to fund those mandates and that comes at a cost to our local budget. So again, it concerns me having to go into our (school) reserves for anything and if we have to go deeper into our reserves to help pay for a new school that scares me even more. And really, although we certainly need new schools, if we don’t have quality teachers and quality support staff in our building working because we are not able to take care of them with their pay it really doesn’t matter what kind of building you have,” said Director Cripps.
In other business Thursday night, the board will consider and act on starting a volleyball program at DCHS for 2024-25; consider and act on a DCHS request to change dual enrollment requirements; consider and act on the DCHS prom being held off campus at the Capitol Theater in Lebanon; and the director will give a personnel report. Matters on the consent agenda will also be considered for adoption.