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| 7/21/2010 6:17:00 PM | Email this article • Print this article | Sharon School to save $1 million in interest on projects for facility
Maureen Vander Sanden
Elkhorn Independent Editor
Taxpayers within the Sharon Joint 11 School District will save more than $1 million on various facility improvements, thanks to a zero-interest federal loan that district secured in recent weeks.
The state Department of Public Instruction (DPI) last month announced the district was approved for a $2.69 million no-interest bonding authority through federal stimulus dollars - nearly half of the amount of money needed to fund various projects that would improve and update Sharon Community School.
In April voters approved a referendum allowing the district to borrow nearly $6 million for projects, which includes multiple infrastructure repairs and improvements including work on the roof and exterior of the building, security upgrades, and updates to the school's heating and ventilation, electrical and plumbing systems.
The School Board recently approved the authorization to begin the bonding request process in order to be reimbursed for the loan through the Qualified School Construction Bonds (QSCB) under the 2009 American Recovery and Reinvestment Act.
District Administrator Dr. Steve Huebbe said officials early on anticipated the district would qualify for at least 30 percent of the cost to fund the work through the QSCB. However, he did not want to mislead residents into believing there would be a guaranteed savings, so officials were cautious about pitching the savings prior to the referendum.
"We knew nothing was guaranteed, but thought there was a good chance we would receive (zero-interest) bonding between 35-40 percent (of the total cost of the projects)," he said.
The district was actually approved for the no-interest loan at 45 percent of the cost to improve the school - news Huebbe said was "quite a surprise" to officials.
"Of course we were very pleased to hear we were approved (for more federal dollars)," he said.
The district may use the savings toward the district's long-term debt, or to fund other projects included on the "wish list" created by the citizen committee charged with the referendum planning, according to Huebbe.
Currently officials are readying construction plans for bidding in the coming weeks.
Some work would begin this fall through the winter, but the bulk of the work would begin next summer and completed in time for the start of the 2011-12 school year.
"We want as little disruption in the classroom as possible," he said in reference to construction work.
Sharon Joint 11 is one of 56 districts statewide that has been approved for a total of $120.5 million in QSCBs, according to a press release from the DPI.
All districts, regardless of size or poverty levels, qualify for the bonds for school renovation or new construction.
The district would have up to 20 years to pay back the loan, according to Huebbe, with the federal government reimbursing 100 percent of the costs associated with the QSCB.
"(The program) help school districts invest in our children and their education while stimulating the economy through construction and remodeling jobs that are vital to our schools," Gov. Jim Doyle stated in the press release.
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