Friday, July 9, 2010

Board discusses financing, bond issue for renovation projects

A citizens group is close to having enough signatures to petition the Decorah School Board for a bond issue.

At a special meeting Tuesday morning, Superintendent Mike Haluska explained the bond issue, estimated at approximately $10.4 million, could go before District voters as soon as Tuesday, Sept. 14.

Haluska said although the amount of work the District will be able to afford to have done at Decorah High School and John Cline School depends on how the bids come in, he said the projected cost is between $16 and $19 million.

The project would likely include a remodel of the high school to address the aging heating, venting and cooling system, installed when the building was originally constructed in 1954.

Other modifications would include an increase in natural lighting to the art room, and adding increased security to the Iowa Communications Network (ICN) room, which is frequently utilized by the public.

The school's lunch room would also be expanded to add another serving line and accommodate more students. A new gymnasium would be built and the old one could be utilized as a staging area while the rest of the building's classes were being remodeled.

Haluska added the exact specifications of the high school project will also depend on whether or not the District receives Federal Emergency Management Agency (FEMA) funding.

"If FEMA dollars are available, we will build a new safe room to FEMA specs. If we don't have the FEMA money, we will still reinforce the walls, so we have a safe place (during a disaster), but we wouldn't have the same degree of ventilation or a generator," said Haluska.

Haluska said with regard to John Cline School, "At the very least, John Cline will be climate controlled."



The breakdown

Haluska explained in addition to the bond referendum, the District's Physical Plant and Equipment Levy (PPEL) and statewide penny proceeds will cover the rest of the $19.5 million the District will deposit in its construction account.

Of the $10.4 million, $10, 280,355 will go toward construction, with $124,645 for the underwriter's discount and the cost of issuance. Of the $5,705,000 the District will receive via PPEL through 2024, $4.2 million will be deposited into the construction account, $1.4 million will be used to pay off the 2004 debt for middle school construction, and another $89,000 will go to the underwriter's discount and cost of issuance. Haluska said the $5 million the District will use from statewide penny proceeds is only half of the District's projected revenues through 2028.

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