News and Opinion from Sisters, Oregon
The Sisters School Board dodged a decision on what to do with $1.9 million of interest money that will be earned while the district builds a new high school.
The board held a special meeting on Saturday, October 13 to decide the issue. By a three to two vote, they asked their architect to show them design for a lower cost school, but made no commitment to adhere to a smaller budget.
Voters approved a $20.5 million bond in May, 2001. The bond money will earn about $1.9 million in interest before the school is completed.
Board members Steve Keeton and Heather Wester had advocated using the interest to pay down the bonds Ûin effect, returning it to taxpayers.
Glen Lasken and Bill Reed argued that the board never committed to returning interest to taxpayers and to do so would unnecessarily tie the district's hands.
Architect Scott Steele believes he was authorized to design a school that would require spending the interest. This is standard practice, according to Superintendent Steve Swisher and Reed.
Steele and Associates presented schematic designs that assumed the district would use interest generated by bond reinvestment to total $22.6 million. The architects will receive a 7 percent fee based on total cost of the project.
This surprised Keeton and Wester. They had assumed the district was designing a $20.5 million school.
Keeton noted that the bond resolution passed by the board stated that "the costs of the project are not to be more than $20.5 million" and that the board agreed that "any funds remaining after the construction will go towards the bonded indebtedness, therefore reducing the overall cost to voters."
"To me, it always meant that we were going to build a ($20 million) school," Keeton said.
(The overall project includes $450,000 dedicated to remodeling the current high school for use as a middle school).
But Bill Reed contacted some 50 districts that had passed bonds and he said not one was returning money to taxpayers.
"To not utilize the interest in the project, I think, is not doing our job, it's not building the best school we can," Reed said.
Jeff Smith deliberately sought a middle ground with a motion to direct the architects to come back with a $20 million design for the high school, providing an additional $1 million contingency fund.
The $1 million for the contingency fund would utilize interest dollars.
"I'm splitting the baby," Smith said. His motion allows the board to reject any cuts required by the tighter budget.
According to architect Scott Steele, those cuts are clear.
"What you have to decide is whether you cut the gym, cut the plazas, cut the lockers or cut 200 seats out of the auditorium," Steele said.
Reed and Lasken both noted that they are opposed to such cuts.
Keeton and Wester voted against Smith's compromise motion.
Keeton said he thinks a flat roof and other construction changes can reduce costs without forcing cuts to "program" space.
No mention was made of reducing $668,000 in outdoor facilities, including tennis courts with lights ($100,000), two football practice fields ($44,000), and a a "Performance" football field ($292,000).
The board will meet at noon on Friday, November 2, to review new designs.
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