Endicott schedules forum on six-year levy proposal

Endicott School District patrons will vote whether or not the school building gets some repairs done with a six-year levy. Ballots are due April 28.

If voters approve the levy, a roof upgrade will be done.

A public forum on the six-year Endicott School levy proposal has been scheduled for Tuesday, April 14, at 7 p.m. in the Endicott school lunch room.

The purpose of the six-year capital project levy is to maintain building infrastructure that is beyond its useful life and ultimately save the district money.

The levy would be collected from 2016 through 2021 at $2.65 per $1,000 of assessed value for each of those years. For a $100,000 home the levy would add $265 per year.

Ballots for the measure will be mailed out Friday. Postmark deadline for returning the ballots will be the election date, April 28.

According to Jayson Schmidt, account executive with McKinstry Company, a Spokane firm specializing in construction consulting services, more than a year ago the Endicott school board began an audit with McKinstry to identify improvements needed in the district.

The report identified needed improvements to the K-8 school building including heat pump upgrades, new boiler (steam to hot water boiler conversion), steam to hot water piping conversion, new unit ventilators, a new gym air handling unit, kitchen remodel, roof replacement, lighting upgrades, flooring upgrade and tree removal and replanting.

The entire scope of work would have taken more than $4 million to accomplish. The only way to fund this work would have been through a bond which would have been $4.25 per $1,000 of assessed value for a 15-year bond. However, the board decided this was too costly for the taxpayers.

The board worked with McKinstry to identify the greatest need projects. Knowing that the school is not eligible for state capital project matching funds until 2025, the district chose to focus on the immediate needs that could not wait another 10 years.

Schmidt explained that schools may participate in the School Construction Assistant Program every 30 years per school building, and Endicott participated in the program in 1995 to do some upgrades. Now the district must wait until 2025 to participate again.

“That is how we reduced the scope of work size,” Schmidt said in an email to the Gazette. “When the district is ready to accomplish the more costly improvements around 2025, they can take advantage of the OSPI matching funds and significantly reduce the taxpayers’ contributions.”

To accomplish the current proposed project, the district reviewed three financing options. Two of them were bonding measures which would have required interest expenses connected with the bond issue. Those options, both rejected by the board, were a 10-year bond, $2.16 per $1,000 assessed value with interest of $381,000, and a 15-year bond, $1.56 per $1,000 of assessed value with interest of $672,000.

The plan for a six-year levy, at $2.65 per $1,000, will also require an expense for interest. If approved by the voters, the district will have the option of obtaining a loan to get the work done this summer with funds borrowed against the anticipated revenue from the levy.

Schmidt explained the district has the option of financing the project through the state LOCAL lending program which can carry a two to three percent interest loan which would be lower than anticipated rates on the bond market.

The LOCAL program was originally created by the Legislature in 1989 to provide the lowest cost financing for state agency purchases by pooling funding needs into larger offerings of securities. Local government agencies of all types can finance equipment or real estate needs through the State Treasurer’s office subject to existing debt limitations and financial considerations. The major benefits of LOCAL are simplicity and low cost financing.

Projects in the measure are as follows:

• Roofing upgrade: The middle school and gym portion of the K-8 building is 20-plus years old, past warranty and failing frequently. Sections have completely rotted and the roof leaks regularly into office and classroom areas. This measure will replace the middle school and gym portion roof deck and membrane.

• Heat pump system upgrade: The existing heat pump system is beyond its useful life and shows signs of failure. This measure will replace all the old heat pump units in the school building.

• Lighting upgrade: Existing lighting in the gym, shop, multi-purpose room and exterior is inefficient with poor light quality compared to current standards. This measure will install energy efficient lighting and motion sensors throughout these areas.