Board of Education Will Examine Best Options for Dodge

While there was some discussion Wednesday night over funding options for the for , the Twinsburg Board of Education now has several options to ponder for future meetings.

The finance committee presented board members with various ways the district could fund the project, with most options using part of the the annual $1.8 million in the permanent improvement fund. Board members agreed asking voters for a bond issue was not a desirable alternative.

The two options the board will look at include Tax Anticipation Notes (TAN) and Certificates of Participation (COPS).

The TAN approach, which resembles a typical loan, would cost the district $8.5 million over a ten-year period including interest. This process would leave between $800,000 and $900,000 in the fund each year. President Ron Stuver originally thought this option would be best, but after looking at the numbers, he isn’t so sure.

“It is probably the most conservative approach and the best option on the interest we would pay,” Stuver said. “But it does not cover the project. As a matter of fact, it just covers the west academic area.”

The COPS method has a much higher interest rate over a 15-year period, topping out at nearly $5 million and would cost the district nearly $11 million total. This would leave between $700,000 to $1.7 million in the infrastructure fund.

The issues some board members had with COPS was the time period of payments as well as the left over monies in the PI fund.

“As much as we want to restore that building, we also don’t want to encumber the district any longer than we have to,” Board Member David Andrews said.

“We need to make sure that we still have some PI funds available to buy new buses, fix a roof, fix the driveways, to handle the things that we need,” Stuver said. “I recognise that it will reduce what is available in the permanent improvement funds, but from what I’m seeing and in my opinion, I think it’s doable.”

The other, less desirable, options are to either ask the voters to approve a one mill levy for a 20 to 30 year period or simply do nothing.

“If we’re going to use PI money and avoid a bond, that’s the best option,” Assistant Superintendent Mike Lenzo said.

“I think we’re doing our students a disservice with this building,” Board Member Stephen Shebeck said. “The longer we let it perpetuate we’re going to have more problems.”

While the board will take some time to think more about which direction to take, they understand they need to make a decision soon.

“It’s going to be a stretch,” Shebeck said. “You’re talking about a building that needs a lot of work. The longer you drag it out, you try to chop up the project, the more you increase the cost.”