The Mount Vernon School District is looking to utilize Secure an Advanced Vision for Education (SAVE) funds for the middle school exterior and middle school parking lot improvements.
The original plan was to potentially utilize physical plant and equipment levy (PPEL) dollars for the improvements, but a renewal of the PPEL fund would not take effect until fall 2026.
The SAVE fund has a bond that will be paid off in 2028, just a few years down the road, and then no immediate plans for building or construction.
Business manager Michael Marshall worked with Piper Jaffray to check out if utilizing the funding stream would be possible.
“There is legislation that would put projects utilizing SAVE monies to a vote of the public in the future, so this might be an ideal time to borrow and get started on this project,” Marshall said.
The bond would be a 10-year bond beginning in fiscal year 2027 lasting through 2036, for roughly $4.9 million. That would cover the estimated $3.2 million of exterior work on the middle school and $900,000 on the parking lot construction. The district may utilize roughly $750,000 in PPEL funds to complete a portion of the projects as well.
The goal in utilizing either SAVE or PPEL funds is to minimize the impact on taxpayers by utilizing categorical funds that would not require going with a voter bond project.
“Because this is SAVE, it’s borrowing against the local option sales and service tax we already are collecting,” Marshall said.
One of the expenditures the SAVE fund routinely pays for is technology upgrades for the district’s 1 to 1 initiatives. Marshall said those expenses will shift to the PPEL monies while the SAVE is utilized for this middle school improvement and parking lot improvements.
Marshall said that Piper and Jaffray worked with him on if they could utilize all SAVE funds and not utilize any amount of PPEL, but that added almost $1 million more in interest to the project over the 10 years.
“I just didn’t think that was a very fruitful option,” Marshall said.
The board will hold a hearing on the plans at the March 9 school board meeting. After that public hearing, they have to wait 14 days to make sure there is not a public petition against the project. If there is not, work can begin on the bond sales this spring and the projects will both get underway.
Tim Keegan asked what is the biggest downfall of moving forward with this project? Marshall said tying up funding for the district for 10 years to tackle these two projects.