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June 26, 2012

TCAPS proceeds with bond proposal

Money would renovate schools and build arts center

BY JAMES RUSSELL jrussell@record-eagle.com

TRAVERSE CITY — Traverse City Area Public Schools will ask voters this fall to approve a millage increase to pay for renovations to aging facilities and construction of a new performing arts center.

The district's board of education on Monday approved a bond proposal for the Nov. 6 general election ballot that would increase the district's existing 3.1-mill bond levy by up to 0.9 mills. It would raise $100 million to pay for reconstruction at Interlochen, Eastern and Montessori at Glenn Loomis elementary schools, estimated at $10 million each; reconstruction at Central Grade School projected at $26 million; and a new performing arts center at Central High School estimated at $26.5 million. The remaining funds would be used for various projects including maintenance, technology upgrades and buses.

A 0.9 mill increase would cost the owner of a home with a taxable value of $100,000 about $90 per year.

"I'm very enthusiastic of the performing arts center, but the core of this program is the reconstructs. It's Central Grade, it's the technology — it's sort of the life blood of the district that needs to be supported," said board member Scott Hardy. "I don't want the other projects to get lost in the smoke. These are critical and the district can't survive without them."

TCAPS' Chief Financial Officer Paul Soma said the elementary schools are literally falling apart, and the district would be forced to pay millions to keep them running without support from the millage.

"Without the reconstructs, we know systems are about to fail. We're not talking years, but a time frame of months — 24 months or less," Soma said.

Reconstruction at Eastern, Interlochen and Glenn Loomis was previously authorized in the last bond proposal in 2007, but Soma said declines in property values stalled the projects.

"We have the authorization to reconstruct the three buildings "¦ but because property values decreased, we can't sell the bonds and keep the millage rate the same at 3.1 mills," Soma said.

If the bond millage is approved by voters in November, a tentative timeline would see ground broken at one elementary school and the performing arts center in June 2013. Work on one or two remaining elementary schools would begin in June 2015, with any remaining schools renovated in 2017. Reconstruction at Central Grade School would not begin until 2019.

The district also envisions a new 1,200 seat facility at Central High School for use by the district. Officials said the existing facilities used by music and theatre groups are inadequate, and a new center would be a community asset.

"I'm thrilled," said Wendee Wolf-Schlarf, TCAPS' K-12 music coordinator. "This is the first step toward a goal we've been after for a long time."

Monday was a busy night for the board. Members also ratified new contracts with five employee unions, and approved an $83,710,108 general budget for 2012-13.

The approved budget did not enact any cuts, but creates an approximate $800,000 shortfall paid for out of the existing fund balance. Fund equity at the end of the fiscal year in 2013 is projected to be at just above $7.2 million.

"That in isolation that sounds negative, but relative to a comprehensive looking backwards and forwards and the trend of that number, that's very positive," Soma said. "We've been talking about $5 million, $6 million, $7 million shortfalls in the past. This is so much more manageable."

The budget recommendations carried one caveat concerning pension and retirement reform. Legislation stalled this spring in Lansing without a deal on the issue, but lawmakers are expected to return to the subject in July.

Soma said that if nothing is done, TCAPS will be forced to pay nearly $5 million extra toward retirement by 2014.

"What would that do to fund equity? We'll be out of money in two-and-a-half years. It's that major of an issue," Soma said. "We would be having meetings again talking about $4 million, $5 million, $6 million reductions to our budget if they don't take care of this."

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