Serving the High Plains
Serving the High Plains
SAN JON — Members of the San Jon Municipal Schools board heard from its bond adviser how a new, $28 million school could be built with relatively low amounts of district funds but require a four-year property tax increase.
While a part of the superintendent’s report, the proposal wasn’t on the board’s agenda as an action item during its Dec. 12 meeting, nor did members in attendance definitively voice whether they supported or opposed it.
Superintendent Alan Umholtz said the school’s buildings were built as early as the 1970s and as recently as 2006. During previous board meetings, administrators and staff members had commented about roof leaks during rainfall.
Umholtz said the district had been prepared to spend about $450,000 from a grant to upgrade a boiler system and other improvements to the grounds.
However, Umholtz said officials from the New Mexico Public School Facilities Authority (PSFA) after an inspection of the campus asked him to hold off on repairs and instead consider the possibility of funding a new school.
Brad Angst, the district’s bond adviser with St. Louis-based Stifel, said by videoconference during the board’s meeting the state of New Mexico is “flush with cash,” and the PSFA is more receptive to funding large projects for small schools.
Angst said Des Moines Municipal Schools recently committed to building a $15 million school with $2 million in district money.
Umholtz said he initially was told a new San Jon Municipal Schools facility for prekindergarten through 12th grade students could be constructed for $30 million, but he lowered that to $28 million. He later explained he wants to retain the old and new gymnasiums.
The new facility would be built on adjacent land and include refurbishing the football and baseball fields.
Angst said PSFA has signaled it could fund construction of a new San Jon school if the district does two things:
— Expand its bonding capacity to 6% of its $17 million assessed value, or $1.045 million.
About $754,000 in outstanding bonds are owed by the district, which means it would have to add between $250,000 and $275,000 to be within 95% of that topline figure.
Angst said the board could approve an education technology note that would finance the purchase of computers, smartboards, security systems or fire-safety systems.
Education technology notes don’t require approval by voters, and the district could have its money by next year.
Angst said the district also could bring a general-obligation bond to a vote by residents, but that referendum wouldn’t occur until November 2023. He said that option is less desirable because it’s unknown whether the state’s coffers still will be healthy during that lengthier time frame.
— Increase the district levy from 7.5 mills to 10 mills over a four-year period.
Angst said that would lead to a property-tax increase of about $30 for every $10,000 of assessed value. He said after the four-year period, tax rates would revert to their previous levels.
Board member Brian Watson voiced skepticism of that part of the plan, saying he couldn’t remember any entity lowering taxes after an increase.
Angst said Eunice Municipal Schools accomplished that with a similar project, with its tax rates falling from 14.5 mills to 5.6 mills.
Umholtz said with a new facility, the district would have to pay for the design and engineering.
He said PSFA labeled the district’s planned repairs as “a Band-Aid” that would require additional fixes “over and over.” The $450,000 earmarked for repairs could be used for design services instead.
Umholtz said he didn’t want board members decide on the proposal right away but should consider it.
“It’s a big decision,” he said.
Board members Watson, Dale Bone and Cynthia Lee attended the meeting. Board President Frank Gibson and board member Jeremy Wade Allen were absent.
In other business, secondary science teacher Sharla Rusk talked about recent student-assessment tests.
When asked how students performed, Rusk said it was “hard to tell” because the state’s new assessment tests rolled out just before the COVID-19 pandemic.
“We don’t know yet,” she said. “I hope we’re going up, but we’ll see.”
She said the district would have a better sense of student performance by spring.
Umholtz said the San Jon student body probably will see “big jump” in math proficiency because teachers had been working to improve that.
Also, Umholtz said an insurance settlement from storm damage was used to make repairs on the new gym’s roof and floor.
He said the roof required additional reinforcements and insulation. However, he said more work would be required later on the gymnasium floor because water from poor drainage was seeping beneath it.
Umholtz said he soon would get a quote to slope the sidewalk and other land around the gym so it drains away from the facility.
For now, he said, current repairs will hold until the next big rain.
“I’m just glad to get that gym back,” he said, noting the facility will host a homecoming event on Jan. 6 and junior high or junior varsity basketball tournaments that month.