In November, North Summit School Board faced a setback when voters rejected a $114 million bond proposal for the high school's failing infrastructure. Marci Sargent, the district's business administrator, acknowledged the disappointment at a mid-November school board meeting, stating, "We know the bond did not go in our favor. But we also know that building construction needs to happen."
Background on North Summit High School
Built in 1977, North Summit High School has never undergone major modifications since its original construction. In August, district officials informed the public that reinvesting in the current structure would be more expensive than building a new high school. This revelation sparked concerns among community members.Reaction to the Bond Proposal
Community members were quick to voice their opposition to the bond proposal. They cited increased property taxes, inflation, poverty levels, and other economic factors. Ultimately, the bond failed with 56% of voters voting against it.Alternative Bond Option
The failed $114 million general obligation bond had an interest rate of 3.8%. Now, the school board is considering a lease revenue bond with a higher interest rate of 4.04%, a difference of $2.6 million. This bond does not require voter approval. A lease revenue bond would require the board to establish a local building authority to issue the bonds to the school district. The district would then repay the authority with revenue generated by the project, typically property taxes.Board's Perspective
North Summit School Board members generally supported the lease revenue bond, considering the rising construction costs and the need for a new high school sooner rather than later. However, they were also concerned that voters would view the situation as the bond moving forward with a project that they had already voted down. Superintendent Jerre Holmes expressed his concerns, saying, "I would love to start the bidding tomorrow, and I know it would be damaging, probably, to all of us. In the long run, we would be saving everyone money, but I guess I’m concerned about the process of putting it out there the way that it’s, ‘This is how it will be’ rather than appearing [to be] the knee-jerk. I think the two-month time period for all of us to consider it would be better than tonight for sure."Board's Decision
The school board voted to delay action on a lease revenue bond and decided to return in January for further discussion and a possible decision. They also voted last week to create a local building authority for the North Summit School District. The building authority, as defined by state law, is a nonprofit entity designed to facilitate and finance construction projects. Its creation leaves the door open for the school board to approve lease revenue bonds in the future.READ MORE