Mid-Prairie votes to proceed with $12.8 Million Project

By Ron Slechta
Posted 5/25/22

The Mid-Prairie School Board, meeting in a special session May 18, voted unanimously to proceed with $12,860,000 in construction projects utilizing revenue bonds.

The revenue bonds will be paid …

This item is available in full to subscribers.

Please log in to continue

E-mail
Password
Log in

Mid-Prairie votes to proceed with $12.8 Million Project

Posted

The Mid-Prairie School Board, meeting in a special session May 18, voted unanimously to proceed with $12,860,000 in construction projects utilizing revenue bonds.

The revenue bonds will be paid off using the sales tax revenues that the district receives each year.

The sales tax revenue is the 1% extra sales tax fund.  “We currently receive about $112,000 per month out of which we first pay for our existing bond at the rate of $32,500 per month,” M-P business manager Jeff Swartzentruber explained. “That bond will mature July of 2028.  The new bond payments will also come out of the $115,000.  We estimate that will be $50,000 per month and will know the exact amount once the bonds are sold on June 13th.”

 The Sales Tax Revenue grows slowly over time.

He said the borrowing is estimated to be $12,625,000.  “Our bond advisors estimate that this will net to $11,315,000--which will be available for the construction projects--as there will be closing costs of $320,000 and a buyer required reserve fund of $991,000,” he pointed out.  “The latter two numbers are estimated.  The estimates are based upon recent bidder activity, buying terms, and interest rates.

Building Priority

The first priority for the bond usage will be the additions and renovations at East Elementary and the Middle School.  The total of the two is estimated to be $10,310,000.  This would leave approximately $1,000,000 for the athletic projects.  

“These projects were chosen because of safety and growth issues,” Swartzentruber stressed.  

Those projects are:

•Softball lights at the Middle School - $150,000 (the candle power on the lights needs to be upgraded)

•Replace the existing 6-lane track at the High School - $670,000 (the track and its base are near their useful life)

•Addition to the indoor practice facility to include new wrestling room and changing rooms - $1,000,000 (wrestling numbers have increased significantly due to interest and due to the energy we see in girls wrestling. There are now over 60 students out for wrestling.)

The estimated total of the athletic projects is $1,820,000.  The difference between the remaining bond proceeds and this total will come from the existing Save Fund balance and Save Revenues received over the next two years, according to Swartzentruber. 

Architect Natalie Opperdal from Shive-Hattery said she would proceed with draft plans and specifications. She estimated that the project would be ready for bid by the holidays in December with approval of contracts by January of 2023.  Projects may start as early as March of 2023.  Depending on availability of materials and structural steel, the projects may not be done until sometime in Fall/Winter of 2024.

Superintendents Contract

The board voted 7-0 to approve a 2-year contract with new superintendent Brian Stone starting July 1. The contract calls for an annual beginning salary of $156,000 plus $1,000 a month payment into an annuity. The contract also allows for 5 days of consulting and speaking or other professional duties. The contract also calls for the school district to pay the premium for an $80,000 group term life insurance policy.

See school board minutes for contracts issued on the consent agenda.