BHS to seek millage at current tax rate or less for new high school
Voters in the Bloomfield Hills Schools district will decide in November on a millage at the current tax rate or less to build a 21st century high school on the Andover campus.
At Thursday's meeting, the Board of Education authorized the administration to develop ballot language that would maintain or reduce the current 2.17 mill tax rate to District homeowners. If voters approve the ballot question on Nov. 2, the 30-year bond issue would begin in 2015.
Taxpayers would not see a tax rate change, because .67 mills of current debt and 1.5 mills of Sinking Fund debt would have been retired. The financial analysis of the bond issue, which could generate at least $60 million, assumes variables such as a further decline in taxable home values by 2015.
With 2.17 mills of expired tax rate, the District would change the Capital Millage mix toward a higher bond issue and a lesser Sinking Fund. For example, 1.3 mills of bond issue and .87 mills of Sinking Fund renewal would not exceed the current tax rate. That rate would generate $66 million for high school construction and still retain $3 million annually for K-8 building maintenance through a renewed Sinking Fund. The current Sinking Fund expires in 2014 and a renewal would need to be approved by voters.
The District would apply $32 million to the project, from $12 million in its Capital Improvements Fund and $20 million in Sinking Funds previously approved by voters. Estimates by two construction management firms (Barton-Malow and George Auch) and one architectural firm (TMP Associates) show that the second phase of Facilities Master Planning would cost between $92 million and $104 million, depending on the plan.
The costs cover a new high school at $86 million to $98 million, plus moving the maintenance facility to accommodate the high school and consolidating administrators in one building for about $6 million. The funding scenario preserves $1 million of current Sinking Fund money for District maintenance of K-8 buildings through 2013.
Besides deciding specific ballot language, the District will develop a Request for Proposal for architectural and construction management services to assist it with formulating high school design concepts, a construction timeline, and more specific costs. The transition of students to one high school will be planned with ample input from students, parents, staff and community members as a construction scenario becomes known.
After more than a year of study, the Board of Education agreed in June to consolidate Andover and Lahser high schools into one new school on the Andover campus. The current building, which was constructed in 1955 and has seen several additions but no remodeling in 55 years, cannot accommodate all high school students. A new facility would likely open to about 1,600 students in 2014, with a total capacity of about 1,800 students. The administration advised the Board last week that occupancy of a new high school by 2013 is not feasible.
In discussion during two study sessions, the Board and administators agreed to delay the consolidation of Andover and Lahser students -- including a merger of athletics and co-curriculars -- until at least 2012, depending on construction logistics and other factors.
Operating savings in the Facilities Master Plan Phase Two are a critical part of the District's Deficit Reduction Plan. Given declining enrollment and reduced state aid, Bloomfield Hills Schools forecasts a double-digit operating budget deficit over the next five years. The $2.5 million in annual savings that is expected from the consolidation plays a key role in preventing instructional and program cuts and class size increases that would affect students.
Facilities Master Plan Phase One's closing of two elementary schools is saving the District $2.5 million annually.
A previous bond issue to build two new high schools on the Andover and Lahser campuses was rejected by voters in 2007. A plan in 2004 to put both schools on the Andover campus was never placed on the ballot.
For more information about Facilities Master Planning in Bloomfield Hills Schools, visit http://strategicplan.bloomfield.org.
