'Taxpayer-friendly,' 'no new millage' issue bound for November ballot

By PAMELA WILLIS

Worthington City School District voters likely will see a $37.5 million replacement bond issue on the November ballot.

School board members met Monday evening at the Worthington Education Center and unanimously passed a "resolution of necessity" for the bond issue.

Board members will meet again at 7:30 p.m. Monday at the education center, 200 E. Wilson Bridge Road, for a special meeting to vote on a resolution to proceed with the bond issue.

The issue was described as a "no new millage" bond issue by Treasurer Jonathan Boyd.

"The bond would be approved for $37,500,000 at an estimated 4.5 percent interest per year," Boyd said. "Most bonds are issued all at once, but this bond could be sold in increments so that the millage rate would not rise above what people are currently paying on the old bond issue -- about 3.8 mills."

Boyd said residents were paying 5.8 mills two years ago on bond issues that were approved in past years.

Worthington voters approved $55 million in bond funds in 1988 and a $14.9 million bond issue in 1997.

"As bonds are paid off, the millage drops," Boyd said. "The new bond issue would restructure the old bond issue and extend the debt, but allow the board to keep the millage at the current rate."

Boyd said the board could control the millage rate by not issuing the whole amount of the bond all at once.

The resolution states the bond issue is "necessary for the purpose of renovating, repairing, improving, furnishing, equipping and constructing additions to existing school facilities, buildings and infrastructure," and goes on to mention "purchasing school buses, related textbooks and technology."

At an Aug. 7 meeting, board members discussed a list of the district's capital needs that totaled $30 million. It included the replacement of more than 40 buses that had more than 150,000 miles or could soon become unsafe for other reasons, "vintage" computers that would not run current software, and a long list of needed roof and boiler replacements for some of the buildings.

Board member Marc Schare praised Superintendent Melissa Conrath for finding ways to cut expenses, which helped delay the need for another operating levy request, after voters shot down a 6.25-mill request in May.

Conrath cut $1.1 million from the school budget this year and planned $1.8 million in additional cuts for next school year -- cuts that won't be restored, so the savings will accumulate, she said.

Boyd said the district also recently received an increase in revenue from the collection of delinquent tangible taxes of more than $800,000, along with other savings, such as a smaller increase in insurance premiums than expected.

"The extra revenue and the reductions meant we could balance the budget in 2008, instead of experiencing a deficit of nearly $6 million," Boyd said.

Before the May levy request, Boyd was expecting a $6 million deficit in 2008 and a nearly $23 million deficit by June 2009.

"The lack of an operating levy in 2006 is the biggest financial story of the evening," Schare said. "Who would have guessed back in May, when 7,000 people voted against the levy, that we would not put the question back before the voters in November?"

Schare said the delay of the levy "signals a willingness on the part of the administration to search for inefficiencies and new ways of doing things."

Schare called the bond issue a "fiscally conservative, taxpayer-friendly package that addresses the district's needs ... in a way that defers new taxes for seven years."

Even though the vote was unanimous to approve the resolution, David Bressman said he wasn't convinced a bond issue was the best way to go.

"I think a permanent-improvement levy would be the best way to generate funds for our capital needs, so that repairs don't build up, but I know the need for the bond is right now, so I'll support the bond issue," Bressman said.

Tyack said the fact voters said no to the May levy request has "been positive, in retrospect.

"It led to the extra efforts on the part of the superintendent, the treasurer and board members to find ways to cut expenses," Tyack said. "I'm in favor of passing phase one of this bond and addressing how the bond will be issued in our second resolution."