Monday, March 5, 2001
The treasurer said setting aside $2 million will not harm the district's financial condition.
By RON COLE
VINDICATOR EDUCATION WRITER
YOUNGSTOWN -- Paying for the expansion of the city schools' building project won't be as simple as expected.
The school system has asked the Ohio School Facilities Commission to reassess some parts of the building plan, which could tack $10 million more onto the project's $163.5 million cost.
The district would have to pay $2 million of the added cost, while OSFC would pick up $8 million.
The school board initially thought it could use interest from the sale of bonds for the project to cover the $2 million, but it won't be that easy, superintendent Ben McGee and treasurer Carolyn Funk told board members Tuesday.
Although the interest can be used for the $2 million, the state requires the school district to at least identify funds other than the interest to cover the added costs, Funk and McGee said.
The reason is that the interest money may be needed to cover other expenses and cost overruns that may arise during construction, Funk said. In the end, if any interest is left over, it can be used to cover the district's $2 million share.
OKs payment: The board agreed Tuesday to put up the $2 million so the reassessment can proceed, but the board won't have to identify the source of the money until the reassessment is finished, Funk said.
She suggested the board put about $500,000 a year from its general fund budget into a permanent improvement fund to cover the added cost if needed.
Board Vice President Lock Beachum said he wanted to be assured that the move would not harm the financial condition of the school system, which just emerged from fiscal emergency earlier this year.
"There is no peril to the general fund or its financial stability," Funk said. "We're still in a very sound position."
Steve Ludwinski of Heery International in Cleveland, the district's project manager, said it was vital for the board to move quickly so the reassessment can be completed.
"We're at a stalemate right now and the architects are at a stand down," he said. Construction is to begin in about a year.
Project details: Voters approved a tax issue in November 2000 to provide the $33.2 million local share of the project, which calls for major renovations to 12 school buildings as well as construction of three new elementary schools and a new high school. OSFC will pay $130.2 million.
The $163.5 million cost was based on assessments of each building's needs that were done by OSFC about four years ago. Since then, architects have identified about $10 million in additional needs.
Among the changes may be to demolish East Middle School (the former East High School) and build a new middle school rather than spend nearly $13 million in renovations to the building.
cole@vindy.com