It was a bit contentious at last night’s (2.7.19) BOC (Board of Commissioners) work session at City Hall.
For the umpteenth time, discussion on funding for a high school in Lakeland was on the agenda. And again, elected officials failed to reach a consensus on how or when to fund the school.
Lakeland high school students attend Arlington High School through an interlocal agreement between the two cities. Since 2014, there has been a plan to have a complete K-12th school system in the City. With a funding mechanism voted down in 2015 and a lawsuit filed against funding a school in 2017, only LMPS (Lakeland Middle Preparatory School) was opened in 2017. Lakeland Elementary School serves PK-4th grades.
Link to the agenda: https://tn-lakeland.civicplus.com/ArchiveCenter/ViewFile/Item/819
City Manager Shane Horn
started the evening, introducing a Power Point presentation relating to school funding and debt which he characterized as unbiased. He complimented the high performing Lakeland School System and said he was excited to see how that could continue. He added, “I want to stay in my lane, not to distract you one way or another.”
Vice Mayor Josh Roman
asked Mr. Horn if parameters had been set for City Finance Director Kyle Wright who worked with other City staff in compiling the presentation. Vice Mayor Roman also asked if the presentation was anyone’s vision.
Mr. Horn replied the presentation was options for commissioners to consider. He said it was his job to look at the entire budget, for the budget to be fair and balanced. He said he appreciated what a school does, but there are other items in the budget. He said the City has significant capital needs.
The Vice Mayor repeated, “Your vision?” Mr. Horn said it was the vision of himself and Mr. Wright.
Mr. Roman said he believed Commissioner Michele Dial
asked that the figures he presented Jan. 17th in a special meeting be fact-checked. “Another vision?” he said. “This is from left field.”
The City Manager said it was not a vision statement, not trying to force the information, but he felt the details were valuable to make a decision. The Vice Mayor contended the numbers were not requested, that it isn’t budget-cycle time. He said it felt like budget talk in the middle of a funding conversation.
Then Mr. Horn explained he thought the numbers would show how a potential $40 million bond (the estimated cost to build a high school) would overall impact the City. The Vice Mayor asked if there would be a separate presentation on the information requested by Commissioner Dial. Mr. Horn answered no.
Mrs. Dial said she asked for clarification on setting the tax rate at a certain amount ($1.83) would finance the plan Vice Mayor Roman presented last month. Would that tax rate cover $35 million for a school (The $35 million is the lower end of what the school might cost). She said she saw some of that information in the presentation, but a lot of the other information muddied the waters.
Vice Mayor Roman said he felt like a different conversation; that it was about what should go in the budget. “You are putting your own spin on this.”
Mayor Mike Cunningham
rushed to Mr. Horn’s defense, saying he was tasked with running the City. “He took it upon himself to come up with this. If we’re going do this, we’re going do this right. It’s quite shocking looking at it.” He added it’s everyone’s tax dollars and said don’t attack this man (referring to Mr. Horn).
Commissioner Richard Gonzales Jr. said Mr. Horn has the good, the bad and the ugly.
The presentation then started with several slides by Dr. Ted Horrell, Lakeland School System (LSS) superintendent. The current discussion is to build a high school for $40 million but Dr. Horrell acknowledged a great school could cost $35 million. The school would open one grade at a time, starting with 9th grade the first year.
He prefaced his presentation by saying he was updating build-out costs and he was quite familiar with this exercise because it’s been done several times in the last 4 ½ years. He said there are two premises: The cost of construction will go up as will student enrollment.
Three years ago, the projection by professionals working with LSS, said the enrollment at LMPS would be 700 students over the next five years. In 2017-18, the first year LMPS opened, enrollment was 772; this year, 778; projected for 2019-20, the number is 838; and the projected number for 2021 is 858.
He said you can see in the community there is a spike in the sale of existing home sales and it is expected to continue. Families with children are coming to Lakeland.
Link to Google album to Dr. Horrell’s slides: https://photos.app.goo.gl/iTYKKWmecoJUd9v48
In detailing the wish list for a high school, Dr. Horrell said it is idealized. “We don’t have to have all these things to have a great high school. This is what we would like to have.”
He explained on the drawing of the school property, the dark blue represents a high school.
Dr. Horrell reiterated what he has said on other occasions. “We can pay now and pay a lot more later.”
He stated he would like to address another concern of building a high school in Lakeland. “I am 100% confident we will have a fabulous, rigorous education for our students.”
He explained it costs less money to educate high school students versus elementary students, noting the classroom size is larger at the high school level. He would expect a two-school system with 1,100-1,200 students per school.
Dr. Horrell reminded City officials that the 60-90 day window to get the funding and start construction is key to the opening date. “You don’t get to get close to it,” he said meaning an opening date for school. He said if it’s not August, it’s not opening. If the money is not available until after the summer, construction would not start until October or November. “If we have the funds in hand within the next 60-90 days, maybe we can open in August 2021. A lot of things would have to go right.”
Commissioner Wesley Wright
asked if there is a financial advantage to bring back high school students to Lakeland.
Dr. Horrell answered yes, that CIF (Capital Improvement Funds) come to Lakeland based on enrollment and can be set aside for capital needs. With the operational money, he said, 10-11% could be set aside and into the fund balance. “We would be able to start banking money to take care of our own capital needs.”
He cited building projects in Arlington like a new central office, middle school gym and contributions to Arlington tennis courts with cash they’ve put aside.
Commissioner Dial said bringing students back to Lakeland is a way to educate them at a lesser amount and also a way to bank money. “The key is getting our students back.”
Mayor Cunningham asked how many 9th graders Dr. Horrell would estimate would attend the new school in 2021. He said 216 plus other students like employees’ children. The figure for 2022 is estimated to be 231.
Mr. Kyle Wright then took the microphone to present 22 more slides.
Link to Mr. Kyle Wright’s slides: https://photos.app.goo.gl/fFNW6Tdg1PEkSkvq6
He presented potential property tax increases using four different funding mechanisms: a 30-year General Obligation Bond GOB); a 12-year Capital Outlay Note (CON); a 2-year Bond Anticipation Note (BAN); and a 40-year USDA. The USDA instrument was a product he found today, said Mr. Wright, and was not included in the original packet of documents. It could be for $60 million or $55 million and include the 2015 loan with no negative tax impact.
Mr. Wright said there is a protest period on the GOB, BAN and USDA; none on the CON.
He reviewed property tax and sales tax collections and existing debts of the City. He suggested there are short-term operating expenses in the future for the City like City Hall and IH Clubhouse modernization, staffing increases and park improvements.
He mentioned the fire fee which Lakeland residents pay through their MLGW bill and could be considered additional tax for citizens. However, he said it is difficult to assign a value to that fee since it varies by household and square feet.
The Vice Mayor challenged what he said was “worst case scenario” being presented and unduly conservative figures. Mr. Wright said it is his job to ensure the City is run fairly and efficiently.
Mayor Cunningham thanked Mr. Wright, noting he took a common sense approach. “I appreciate this about you.” He then asked if the plan to borrow $50 million in 2015 for a combined middle and high school for a 55-cent tax increase was enough to fund the bond.
Vice Mayor Roman objected, saying the question was not a fair question. The Mayor said it was and that the Vice Mayor was out-of-order. When the Vice Mayor challenged the ruling, Mayor Cunningham threatened to have the Vice Mayor removed from the building.
Responding to the question, Mr. Wright said to be fair, the Board set the tax on what was thought to be appropriate. “I can’t agree or disagree.”
Commissioner Dial said the 60-90 days made sense to her. That is one year short of Mayor Cunningham’s suggestion that the school be opened in 2022. “In my mind it will not make a lot of difference. In February 2020, we will be having the same presentation with increased construction costs.”
She said she knew the Mayor said he would build the school, that he said he would do what is best for the City. The plan on the table now is just one year prior to what he said about construction.
Commissioner Gonzales
said he is concerned about the impact on senior citizens. He noted that the increases in his retirement income this year would be completely wiped out by the proposed tax increase. He added that the tax increase will impact builders and could push people to move to Fayette County or maybe to Germantown where they get more services for their taxes.
The Mayor questioned the short time frame to borrow the money. “Why borrow money in 60 days? He asked. He said he is working with Dr. Horrell and Kevin Floyd (Lakeland School Board chair) to have something together that is right.
Following the second slide presentation, Commissioner Wesley Wright presented 40 slides explaining the value of a complete school system to the City.
Link to Google album of Commissioner Wright’s slides: https://photos.app.goo.gl/91fUKJdPGZaifo7t7
He noted that bringing a grade to the school one year at a time, there would still be no 12th graders in 2023. “This will not be a mass exodus (from Arlington High School),” he said. “You phase it in. And students can finish in Arlington. Arlington knows we want to build a high school. It’s not done in secret.”
He said a high school gets it all going. Trying to do commercial first doesn’t work. “They are waiting for residential.”
Mayor Cunningham announced he is going to do a survey of offerings that students want in their high school. He said he has checked on high school offerings. “It is huge.” He said he would send out the survey. “This is huge to doing it right. I am not kicking it down the road.”
Vice Mayor Roman asked that the survey be run by the new city attorney and the school board.
LSB Chair Floyd said, “We all want feedback,” and agreed that Dr. Horrell could work with Mr. Horn.
And then, the rest of the work session
Officials from the Lakeland Area Chamber of Commerce, Wil Ashworth and Brittney Buchanan, spoke about their request to the BOC for a $30,000 match to an EDGE grant for funding business plans, business recruitment and marketing.
Commissioner Dial spoke of her goal to form a Citizens Advisory Board with 10 volunteer representatives from all areas of the City. They would meet quarterly, perhaps bi-monthly initially, she said. They would serve two-year terms and be required to attend a minimum of meetings per year. They would learn the workings of the City as well as help with crime prevention. Mrs. Dial said she hoped to have the application process ready by March or April. Mayor Cunningham lauded her efforts, saying it was a fantastic idea to get more people involved in the City.
There was no representative from the Shelby County Sheriff’s Office to do a monthly report and Mr. Horn deferred his monthly report.
There was limited discussion on an ordinance and final reading amending the Fiscal Year 2018-19 budget. There were three resolutions to appoint members to three volunteer boards, who will be selected at the Feb. 14th business meeting.
A resolution for a sewer improvement project was put on the consent agenda, along with a resolution for a final plat for Kensington Manor and the 2019-20 budget calendar.
Also discussed were resolutions dealing with formation of a Lakeland Fire Department. Vice Mayor Roman deferred the conversation on separating the Municipal Planning/Design Review Commission.
The idea of hiring an ethics officer was removed, with the Mayor stating that the new city attorney would act as the ethics officer, so there was no need to pursue an additional person.
The Mayor deferred conversation on forming a Citizen’s Financial Review Board and Commissioner Wright briefly touched on New Canada Road.
There will be discussion at another time on neighborhood security system.
And at 9:51 p. m, the work session was adjourned.
… Photos by Jim Willis, Lakeland Currents
Link to Livestream: https://livestream.com/lakeland/events/8556638
https://livestream.com/lakeland/events/8556645
