D-26: $17M needed
By BRETT ROWLAND - browland@nwherald.com
CARY – Voters will be asked to approve a $17 million bond issue for District 26 in April to help pay for capital improvements and to improve the district’s financial outlook.
Referendum approval would mean a property tax increase for residents, but school officials said the money was needed for renovation projects, technology upgrades and long-term financial health. With a weak economy, the referendum might be an especially tough sell to property owners.
“There’s never a good time for a referendum, but our job is to tell the story of where the district is financially,” Superintendent Brian Coleman said. “We have to provide a safe and secure environment for our students to learn in, and we have to have technology to make sure they are competitive.”
If approved by voters, the tax rate would increase from $2.61 per $100 of equalized assessed value to $2.66. That would mean the owner of a $300,000 home who takes the homestead exemption would pay about $2,514 – or $47 more than the current total tax bill of $2,467 to the district. Taxpayers wouldn’t see an increase until 2011 and the rate bump would end after 11 years, Director of Finance and Operations Todd Drafall said.
Cary resident Mike Lindsey said he planned to vote against the bond issue.
“I have voted for tax increases in the past, but [the school board] is trying to sneak this by us, and there is no way I’m going to say ‘yes,’” he said.
Lindsey said he understood that having quality schools propped up area home values. However, he said he wanted the district to prove that it could “toe the line” when it came to spending before he would approve a $17 million referendum. He further criticized the district for failing to plan ahead and save money for capital improvements such as new roofs.
A large chunk of the bond money – $10 million – would be used for several capital improvement projects. Those include replacing the roofs at Three Oaks and Deerpath schools as well as replacing older buses, outdated technology equipment and software.
The money also would go toward parking lot repairs, sidewalk work, building maintenance and heating and air conditioning updates.
The remaining $7 million would bolster a working cash fund that would serve as an internal bank for the district. Instead of having to go to outside banks and pay thousands of dollars in interest costs, the district could use the fund for short-term borrowing needs.
Last year, the district borrowed $9 million to make ends meet and paid about $130,000 in interest costs, Coleman said.
Money taken from the cash fund to pay for operational expenses would have to be paid back into the fund at the end of each year. The fund would be tightly controlled by the board and Coleman said the district would take pains to make sure all spending was transparent.
District officials will host a public meeting at 7 p.m. Thursday to inform residents about the referendum. The meeting will be at Briargate School, 100 S. Wulff St., Cary.
Coleman said that district officials, spurred on by the school board, were constantly looking for ways to save money and were in the process of implementing a zero-based budgeting process, a process designed to constantly re-evaluate expenses and make sure they were justified.
“I really think the board and the administration have provided a responsible approach to meeting the needs of the district with what we believe is a limited impact on the taxpayers,” Coleman said.
If voters reject the bond issue April 7, the district and the school board will face some tough choices, Coleman said.
“If it doesn’t pass, then we will have to go back to the budget and make some difficult decisions,” he said. “We’ll also have to continue to use short-term borrowing.”
