Cape schools could float bond issue in 2009 without tax

The Cape Girardeau School District could issue a $12 million bond issue in 2009 to pay for needed facility repairs, improvements and new construction without a tax increase, school officials said Friday.

Even without a tax increase, voter approval would be needed to approve a new bond issue, said Patrick Morgan, who heads administrative services for the school district, including overseeing facilities.

Morgan told the school board at a special study session that the district could pay for projects -- such as a high school football stadium and a high school performing arts auditorium -- because current bonds for construction of the high school and career and technology center will be paid off in two years. That would allow the district to incur new debt, he said.

Brenda McCowan, the district's director of finance, said voters would have to approve such a measure by a 57.14 percent majority.

School officials are looking at the possibility of putting such a measure on the April 2009 ballot, she said after the meeting. The bond issue likely would be retired over 10 years.

Voters would be deciding whether to keep the property tax levy at the current level to retire a new bond issue or reduce the 56-cent debt service portion of the levy and not issue bonds.

McCowan said school officials haven't determined how much of the debt service portion of the levy would be reduced if another bond issue was approved. But even without incurring new debt, the debt-service part of the levy wouldn't be eliminated. That's because the debt-service portion of the levy funds other debt besides that owed for construction of the high school and the career center, she said.

The total levy in the school district currently stands at $4.16 per $100 assessed valuation.

A new bond issue could go a long way in addressing needed repairs to school buildings, Morgan said.

Franklin Elementary School, for example, needs more than $1 million in renovations involving heating and cooling systems, boilers, windows, lighting and doors.

After the meeting, McCowan said the school district spent $1.5 million to repair, equip and furnish its school buildings in the previous fiscal year that ended June 30. It included payments on the lease-purchase of the heating and cooling system at Central Junior High School, she said.

Money for emergencies

McCowan said the district keeps some money in reserve to help cover maintenance emergencies such as fixing leaky roofs.

But she and school officials say the district doesn't have enough money in its budget to pay for all the needed building maintenance work as well any new construction.

When emergency projects come up, that cuts into the amount of money available for other building maintenance projects, McCowan said.

"If you have a boiler go down, you are talking megabucks," she said after the meeting.

Board member Kyle McDonald said the auditorium and stadium projects could help sell the bond issue to voters. "These are two projects that would be very popular with the community as a whole," he said.

But school officials said nothing has been decided regarding projects or any bond issue.

"These are all possibilities," said board president Sharon Mueller.

Superintendent Dr. David Scala said he's exploring the possibility of securing a donation to help fund the auditorium project.

Morgan told the board that school officials must develop a list of projects that would be funded if voters approved a new bond issue. "The public would expect a plan," he said.

School officials said Friday's meeting at the board office was a starting point and that time is needed to draw up a plan.

"We are not starting any too early," McCowan said. "We have a lot of decision-making to do."

mbliss@semissourian.com

335-6611, extension 123