School trustees mull levy amount

School trustees in Coeur d'Alene have much to consider as they move toward setting the amount of a supplemental maintenance and operations levy they plan to ask voters to approve in March.

Those considerations - presented to trustees during a workshop Monday - include a list of $5.7 million in new costs for "identified needs," and a shortfall of $1.8 million in the cost to complete the ongoing rebuild of Winton Elementary.

While the building project shortfall is not related to levy dollars, Superintendent Matt Handelman said it is important for the trustees to be aware of it as they decide how much local property tax support they will ask voters to accept.

He reminded the trustees that the current two-year supplemental levy of $12.9 million per year represents 21 percent of the school district's general fund. The existing levy will expire June 30.

"If we were to lose 21 percent, our reality, our children's reality, would be very different," Handelman said.

Regarding the Winton shortfall, Handelman reviewed the history of the project. Winton was one of five aging district schools pegged for major renovations that have been financed by a $32.7 million bond approved by voters in 2012.

The original construction budget for Winton was $4.9 million, with the understanding that if the school needed to be rebuilt rather than remodeled, the cost would increase. The condition of the school, built in 1925, called for a rebuild.

T.W. Clark Construction of Spokane Valley submitted the winning bid for the Winton project. The company was awarded a $7.2 million contract in May. The additional funds for Winton were expected to come from savings on other building projects under the bond, and from the sale of the district's Northshire property on Atlas Road.

The savings realized were not as much as anticipated, Handelman said, and the Northshire property sold last summer for a lower price than expected.

"We are $1.8 million short, even with all the savings," Handelman said. "That's a challenge. I was made aware of it about two months ago, and I started working to rectify that."

The cost of the project, now $8 million, includes architect and engineering fees that were never added to the cost of the project.

Handelman said the gap could be filled using some of the district's fund balance, or selling the district's remaining piece of property: 10 acres on Thomas Lane, off 15th Street near Nettleton Gulch.

Handelman recommended the Thomas Lane property be appraised.

"Can we get the central office appraised?" asked Trustee Dave Eubanks, referring to the school district's new administration building located on Northwood Center Court, near the intersection of Northwest Boulevard and Ironwood Drive.

The $2 million purchase of the building in 2013 was funded largely by the sale of district properties including Bryan Field and Person Field, which were purchased by the city of Coeur d'Alene.

Trustee Tom Hamilton said it doesn't make sense to sell the new district office building because the district would end up leasing property for a new central office headquarters.

Eubanks disagreed.

"I know there are lots of school districts that house their administrations in portables, near school buildings," Eubanks said. "...we have a hard asset problem. We could solve it with another hard asset."

Board chair Christa Hazel said she would like the board to look at all of the district's assets.

Hamilton, who was chair of the board when the district office building was purchased, said the trustees need to find a balanced approach to the shortfall. He said he thinks it's shortsighted to sell the district office, and he would "fight pretty hard" to keep the building.

Hamilton said it would make more sense to sell the district's Midtown Meeting Center, 1505 N. Fifth St., and hold school board meetings at the Coeur d'Alene Public Library, in the community room used by the Coeur d'Alene City Council.

"We worked hard to get the district office," said Trustee Terri Seymour, who was on the board with Hamilton when the building was purchased. "And we got a really good deal on it, but I also agree with Mrs. Hazel that we have to look at everything."

The $5.7 million in "identified needs" that could possibly be funded using supplemental levy dollars were determined through a survey of parents, patrons and district teachers and staff.

The biggest ticket items on the list are reducing elementary classroom sizes by three students, at a cost of $864,100; hiring nurses so there would be one stationed in every school in the district, at a cost of $504,634; getting technology on a 5-year replacement track, at a cost of $332,000; and paying for a K-12 math curriculum adoption, with an $800,000 price tag.

"We have been blessed by the support and generosity of our taxpayers," Handelman said.

He noted that during the Great Recession, voters in the district passed a supplemental levy and the largest building construction bond in the history of the school district.

"We also know we can't rest on our laurels," Handelman said. "We know if it doesn't pass, our world, our kids' world, is going to be very different."

The trustees are expected to set the levy amount when they meet Jan. 5, although they could postpone the decision one more time. They must, however, decide the levy amount by Jan. 15 if they want it to be on a March ballot.