Will you vote ‘Yes’?

Editor’s note: This is the first of a two-part story. Part one include information about the district’s educational and facilities proposal, how it hopes to fund it and what it means for taxpayers within its district. Part two, which reflects questions and comments from member of the public who attended Wednesday’s informational meeting and public forum, will be published Friday.

When Creston voters head to the polls March 1 to vote in Creston’s special election, they will be asked two questions:

“Do you support a $29.4 million 20-year general obligation bond to support education and facilities?” And, “Do you support a 25-year revenue purpose statement that allows the district to borrow against future SAVE revenue to support education and facilities?”

What’s proposed?

Creston Community School District is seeking a $24.9 general obligation bond to fund a portion of a $42.9 million facilities and educational improvement plan. Funding sources for the proposal also includes nearly $16.7 million from SAVE funds, and $1.3 million from district funds.

Creston Superintendent Deron Stender said the district hopes to start its facilities improvement plan sooner than later in an effort to take advantage of lower interest rates and costs associated with labor and material.

For the bond to pass, it needs 60% of the vote. To allow the district to borrow against future revenue from the SAVE fund, that needs 50% voter approval.

Should neither measure pass, the board would gather to discuss its next steps to achieve improvements needed. Should only one pass, the district will be limited in funding and consider coming back to voters in November as the needs of the district remain the same.

Why?

The district is seeking to improve its facilities due to its aging infrastructure. The high school was built in 1990 and the middle/elementary building was built in 2005. The Early Childhood Development Center has undergone multiple remodels and additions in past years, and currently has a costly issue of water running under the Burton R. Jones gymnasium.

The Burton R. Jones gym was added in 1957, boardrooms and elementary office in 1964, majority of ECC was built in 1986, Head Start classrooms were remodeled in 2008, and the AEA was built in 2013. Over the past 10 years, the district has spent $13.3 million to maintain its facilities.

Improvements included in the district’s $42.9 million proposal include:

• A Pre-K/Kindergarten program addition to the elementary/middle school, performing arts improvements such as spaces for vocal and band and general storage, new activities addition to include a competition gymnasium, tennis courts, a walking/running track and associated amenities (funded through the $24.9 million general obligation bond).

• A greenhouse and improvements to the media center and science rooms, parking, HVAC and concrete pathways (funded through the Secure an Advanced Vision for Education fund).

Superintendent’s remarks

During an informational public forum Wednesday, Stender said many of the projects included in the district’s proposal were identified as priorities in a 2017 community survey under former superintendent Steve McDermott.

“About half of those projects are complete as of today and about half of those projects have not been completed,” said Stender.

In 2019, the district’s facilities’ plumbing, electrical, and concrete – in addition to its compliance with the American Disbilities Act and operational costs – were examined, which formed the basis of the current proposal, which aim to meet the needs of the district and modern configurations to meet specifications by the Department of Education.

“From the very beginning, going back to 2017, this has been community driven,” said Stender.

For the past two years, two community advisory committees have met to study education and district facilities. As the proposal developed, reducing costs was a major focus was to reduce costs, such as maintenance and duplication of services.

Some have inquired why the district hopes to retire the ECC. Engineers have determined it would cost the district nearly $16 million to repair the facility. By housing the ECC under the same roof as the elementary/middle school, Stender said it is estimated to reduce the district’s expenses by $250,000 annually.

The bond

CCSD is seeking a $24.9 million general obligation bond, which would be financed by the taxpayers, but Stender said the levy – currently $16.55 – for Creston residents will not increase.

The district still has two outstanding bonds from the construction of the elementary/middle school and high school. One expires June 30, and the other ends June 30, 2023. Should voters favor the project at the ballot box March 1, the district will move forward with the bond.

On the other hand, Prescott residents can anticipate an increase of $2.40 (from $14.15) in their school tax levy as a result of Prescott being fully incorporated into Creston’s district.

Stender explained, when Creston and Prescott districts consolidated, Prescott was debt-free and did not acquire any of Creston’s debt. However, it would be responsible for a portion of any new debt, once consolidated.

Should the bond fail to garner support, many have asked if their property tax will go down.

‘Not necessarily,” said Stender.

While the debt would be paid off, the school board could choose to continue to maintain the current levy and support other areas of the budget, and therefore would not decrease.

“The district has many different categories of funding. Let’s take a management account for example. That pays for our liabilities, our insurance, unemployment, all those those things we can’t really get our arms around until it happens, if we get in a lawsuit. So there are other funds similar to that that we haven’t funded fully to keep the tax rate flat,” said Stender. “The district and the board would be able to have that decision to say ‘We want to make it so it’s healthy to support our students and our staff.”

Stender said while some may be begrudged by who gets what space – whether new or renovated – the most important thing to remember is that every space will be “fantastic” and will be designed to best meet the needs of those utilizing the space.

SAVE

The portion of the projects funded through SAVE are not funded by the taxpayers. These projects will be paid for through the Secure an Advanced Vision for Education (SAVE) fund.

According to the Iowa Department of Education, SAVE is a funding stream formerly known as the statewide school infrastructure sales and services tax and also known as the local option sales and services tax for school infrastructure. This money is to be used solely for school infrastructure needs or school district property tax relief.

“That’s the 1-cent sales tax by the state of Iowa that every district receives,” said Stender. “So we’re going to borrow against that money, our future revenues to be able to pay for these projects.

To make up the difference not covered by the bond or SAVE, the district will pay in up to $1.3 million of its own money, which has been earmarked for capital improvements.

“The financial stability of the district remains intact even though we’ve got all these projects,” said Stender.

Voter information

Residents of the Creston Community School District, who are at least 18 years old, will be able to vote. Polling locations will be open 7 a.m. to 8 p.m. at Arispe Methodist Church, Salem Lutheran Church, Southwestern Community College Performing Arts Building, Trinity Lutheran Church, Supertel Inn, Crest Baptist Church and Prescott Library/City Hall.

Early voting is offered in person between 8:30 a.m and 4:30 p.m. from Feb. 9 through 28 at the Union County Courthouse. Absentee ballots may be requested from the auditors’ office and must be received by the auditors’ office by March 1.

For more information, contact Stender at dstender@crestonschools.org.