At a special called meeting tonight (1.17.19) in packed City Hall chambers, the BOC (Board of Commissioners) met to discuss three items, including funding for a high school in Lakeland.
Vice Mayor Josh Roman presented slides showing several options to get to high school construction and completion immediately. Mayor Mike Cunningham offered what he called a compromise to open a high school in August of 2022 and start the planning in 2020-2021 or perhaps six to nine months sooner. He called his proposal a “stake in the ground.”
Link to Google album of slide presentation by the Vice Mayor: https://photos.app.goo.gl/cQNwgF4kC9CCgiZw5
Background
The Lakeland School System (LSS) operates two campuses: Lakeland Elementary School (LES) and Lakeland Middle Preparatory School (LMPS). High school students attend Arlington High School through an interlocal agreement between the cities.
In 2014 there was a plan to build a middle and high school campus at the current Lakeland Middle Preparatory School. Funding for the combined schools was voted down in a 2015 bond referendum. The middle school was subsequently financed through a Capital Outlay Note (CON) and opened in August 2017.
At the Monday (1.14.19) Lakeland School Board meeting, Superintendent Dr. Ted Horrell said it is feasible that LSS could afford to pay the City $700K for four years — a total of $2.8 million, out of its accrued fund balance. The Board discussed that option Monday but did not vote.
See story from Monday: https://lakelandcurrents.com/lsb-meeting-high-school-costs-that-was-then-this-is-now/
Google album from meeting: https://photos.app.goo.gl/uCFd9WfEgppMSjNPA
Discussions tonight
Vice Mayor Roman began the discussion with 20 slides on the screen, showing the current school debt of $2,213,150 and the projected school debt, adding a 30-year General Obligation Bond – $2,968,145. The difference between the two debts, he said, is $754,995. He suggested this money could be covered by the donation of funds from the LSS, as suggested by Dr. Horrell, for the first four years of the loan. He then offered options to cover years 5-30 of the loan.
He commented the numbers were his and his opinion. In full disclosure, he noted, Kyle Wright, city finance director, challenged some of Mr. Roman’s figures regarding property taxes.
The Vice Mayor said the 30-year General Obligation Bond would not require a tax increase. Another funding option, he said, would be a CON and depending on the type, would require a tax increase of 45 to 58 cents. “I believe the 30-year bond is the least uncomfortable,” he said.
Three residents spoke to the BOC: Katie Autry and Amy Foster spoke in favor of building a high school now. Linda Miller spoke about respect among BOC members and specifically singled out Commissioner Michele Dial for what Ms. Miller considered Ms. Dial’s unprofessional behavior at the Jan. 10 BOC meeting. Ms. Miller also said she is concerned about fiscal responsibility.
Commissioner Wesley Wright asked Dr. Horrell if he could address some of the concerns about building a high school now.
He said the original plan was to build a combined high and middle school, thinking that was the most cost-effective and the best bang for the educational dollar.
Dr. Horrell noted that part of the school budget goes into a fund balance, about 11%. He said if your total revenue is higher (with a high school and more students in Lakeland), that provides additional dollars to save. The economy of scale, he said, is to have more students. It means coming to the BOC less often to ask for money. “It allows us to take some financial matters into our own hands.”
And he added, LSS can offer outstanding educational experiences at a high school in Lakeland.
Commissioner Dial asked Dr. Horrell how LSS can afford to give the City $700K a year for four years. He said the money is in the System’s own fund balance.
Following the presentation, the Mayor said he would like to offer his statement about funding a high school. He said he was going to put a stake in the ground with a rough draft proposal. That stake was to open a high school in August 2022. That is 3-½ years. The Mayor acknowledged if revenue goes well, the school could open sooner, perhaps August 2021 which would be 2-½ years away.
Dr. Horrell said Monday (at the LSB meeting) he would expect construction on a high school to take 18-24 months.
The Mayor is hinging his school proposal on avoiding a prepayment penalty on the current CON in March 2021.
He also recommended that the $700K which could be offered to the City by LSS be utilized now for such things as architecture and design plans until it is time to borrow the rest of the money and break ground.
Video of the Mayor’s announcement:
Link to meeting agenda: https://tn-lakeland.civicplus.com/ArchiveCenter/ViewFile/Item/811
Link to City Livestream: https://livestream.com/lakeland/events/8530216
Also on the agenda:
There was discussion on a Lakeland fire department presented by Vice Mayor Roman. He said he had a conversation with former City Attorney Chris Patterson (he resigned this week) about getting an extension on the July 1, 2019 state date for a fire department. Currently Shelby County Fire Department (SCFC) operates the one fire station located in and owned by Lakeland.
The Mayor said he would support an extension but preferred to rescind the plan to take over fire services in the City.
Chief Alvin Benson with the SCFD was in the audience and was asked to address the BOC. He said he intentionally delayed starting a fire class, waiting on the City of Lakeland’s decision. He added the decision to further delay the decision does impact the County fire department. He said he encourages the City to move one way or the other.
Commissioner Dial said she wanted the extension until a decision is made to extend or dismiss.
The final item up for discussion was replacing the City Attorney who resigned this week. Mr. Horn was asked to research the process on hiring a replacement. Mrs. Dial asked for direction on exactly what the Board should be looking for in a new attorney or law firm to represent the City. Vice Mayor Roman asked if any members have suggestions on candidates, can they be submitted to Mr. Horn. The Mayor said yes.
The meeting adjourned at 6:48 p.m. to allow the Municipal Planning/Design Review Commission to start its meeting which had been scheduled for 6:30 p.m.
… Photos, video by Jim Willis, Lakeland Currents
