Why is the Board bringing this proposal to the community now?
There has never been a better time to more affordably replace our outdated, inefficient and expensive to maintain buildings with newly constructed school buildings. Here is a “By the Numbers” look at why:
1) 27.8 million
The amount of money in dollars the state of Ohio will give Finneytown Local School District (FLSD) to construct a brand new K-6 elementary school and 7-12 high school/middle school.
The percent the state will contribute to rebuild eligible FLSD classroom space in an Ohio Facilities Construction Commission (OFCC) new construction project. Our state share, which was as low as 28% as recently as 2014, has increased over the past few years to an amazing 60%.
The average interest rate at which the District is expected to sell bonds needed to pay its share of the new construction project. Our timing is very good. Interest rates remain near historic lows. Interest rate is a huge component in total project cost. If interest rates were just 1% higher, the cost of interest payments would increase by $5.3 million over the life of the project.
The number of bond retirement mills that will drop off Finneytown taxpayer tax bills within the next five years. In a sense, the net impact of the new bond millage will only be a 2.14 mill net increase, (including the 0.50 mill maintenance levy) after 5 years. Five (5) is also the approximate amount of years it will take to construct the proposed new school buildings in two phases.
The operating cost in dollars the district expects to save per year by consolidating from three to two schools under its proposed facility master plan.
The cost in dollars of waiting just one year to construct the $24.6 million Phase I project at 3.5% annual inflation. The average long term (30 years) construction cost inflation rate is 3.5%, even with recession years included. In times of rapid construction spending growth, the rate is higher.
The percent the state is willing to pay toward a non-OFCC, bond financed, renovation project. Also the percent the state is willing to pay toward the District’s general fund and permanent im- provement fund expenditures to repair our old buildings. This could become the backup plan.
The millage required to construct the proposed building project without OFCC assistance, if 100% FLSD taxpayer financed.
This is the percent of Ohio school districts that have already received OFCC money and are enjoy- ing the advantages of new buildings – enhanced safety, security, comfort, power, technology, edu- cational fitness and other amenities.