We Are Seeking Your Input
One of the largest expenditures in a school district’s annual budget is debt service. The debt service line includes all the financial borrowing from the district and comprises of the costs associated with transportation BONDS and construction and building project borrowing. The district works with our financial consultants, BPD Inc., to contain the debt service payments to ensure that payments remain consistent from year-to-year thereby avoiding large increases in expenditures that could negatively impact the tax levy. By forecasting future debt service payments the district engages in long-term fiscal planning and looks to manage our debt through sound fiscal strategies, including, when appropriate, refinancing debt and looking to off-set any debt payments with reimbursable building aid.
In reviewing the district’s long-term debt service payments, the costs associated with the district’s $15,745,000 building project that was approved in December 2006 and completed in the 2011-2012 school year, and is set to expire in the 2024-2025 school year. As a result, there is a projected reduction in the yearly debt service payments for approximately $200,000. While an initial view of the reduction may appear positive, by not replacing the debt the district is setting itself up for a large debt service spike in the future as well as a significant reduction in the corresponding building aid; meaning our state aid payment would be drastically reduced. As a means to retain influx of building aid and to maintain level debt, the district will be proposing a Capital Project to begin in the 2023-2024 school year. This project will enable to district to enhance our facilities, while also maintaining a strong fiscal strategy.
The district is in the early development stages of the proposed Capital Project and are using the discussion items from the $15,745,000 project as a baseline for future planning. However, we want to hear from you. Below is a link to the survey. The information collected from the survey will help guide the district as we move forward in planning, anticipating a potential construction vote in February or March of 2022.