(Atlantic) Travis Squires of Piper Sandler presented the School Board with financial options to address the overage for the district’s expansion projects at Washington Elementary, Schuler Elementary, Atlantic Middle School, and Atlantic High School.
In November, patrons of the Atlantic School District approved a General Obligation Bond measure for up to $22.5 million to fund classroom additions, a new secure entrance at Washington Elementary, a skybridge and commons area connecting Schuler Elementary and the Middle School, and additional classrooms at the High School. The plan also includes remodeling and upgrades to existing facilities, such as secure entrances and improvements to the media center and commons area at the High School.
During a recent work session, the DCI Group Construction Management Firm estimated the total project cost at $26 million, prompting the school board to pause the construction phase for a thorough review. Squires, appearing via Zoom, along with Brandon Schulte and Justin Page of DCI Group, reviews the proposed funding structure for the district’s major capital improvement projects.
First off, Squires stated that there is a clear path to maintaining the $2.50 levy rate despite the overage.
The presentation outlined funding sources, including voter-approved General Obligation (GO) Bonds, Physical Plant and Equipment Levy (PPEL) revenues, Secure an Advanced Vision for Education (SAVE) sales tax revenues, cash reserves, and investment earnings. The GO Bond issuance is projected to provide net proceeds of $22,905,151. Additional funding sources include an estimated $616,991 in investment earnings and $2,477,858 in SAVE revenues, resulting in total projected project funding of approximately $26,000,000.
Squires presented a couple of financial options that would use the district’s resources to cover the overage.
The total estimated cost of the proposed capital projects is $26,000,000, which aligns with the projected available funding. The primary funding source is the voter-approved GO Bond proceeds, supplemented by SAVE revenues and investment earnings. The financing plan is structured around the previously communicated debt service levy associated with the bond referendum.
There was no school board action taken on the construction projects, and they await the follow-up from the DCI Group Construction Management Firm.
