Manatee School Board moves to borrow $100 million for renovations and construction
The School Board of Manatee County has agreed to borrow up to $100 million and move forward with a handful of construction and renovation projects.
With a unanimous vote on Tuesday evening, board members approved the issuance of “certificates of participation,” helping to finance half a dozen projects in Bradenton, Palmetto and elsewhere in the district.
“We had an extensive series of workshops on this issue,” board member Scott Hopes said before the vote. “We had an engineering study that identified the needs of the district for numerous renovations and additions and capital projects. And as we discussed, with the cost of money as low as it is, and the inflation cost of moving these projects out . . . this is the right thing to do.”
“Dr. Hopes, he took the words right out of my mouth,” Vice-Chair Charlie Kennedy followed. “That’s exactly what I wanted to say.”
Tuesday’s decision followed a series of board workshops that took place on Aug. 26 and Oct. 8. Tim Bargeron, the associate superintendent of finance, explained the details and possible savings in a presentation earlier this month.
He expected to save about $30 million by doing the projects now and avoiding the cost of inflation years later. Bargeron also anticipated about $22 million in interest costs, meaning the district stood to save $8 million by borrowing the money and speeding up the projects.
Though an estimate was unavailable, he said there would also be savings on maintenance and utilities at some of the improved buildings.
“Due to recent global events, interest rates are at all time historic lows,” his presentation read.
Between the cost of site improvements, planning and construction, the district was planning to invest $100 million in half a dozen projects, according to public records.
Blackburn Elementary Renovate & Replace: $24,393,500.
Haile Middle Renovation: $31,247,000.
Manatee High Grandstands: $3,000,000.
Security Fencing: $1,954,750.
Tara Elementary Renovation: $26,175,250.
Southeast High Science Building: $13,229,500.
Three of the buildings — Tara Elementary, Blackburn Elementary and Haile Middle — were listed as “poor condition facilities” in an April 2019 report by Jacobs Engineering Group.
“The facility condition assessment evaluates each building’s overall condition, including its site, roof, structural integrity, the exterior building envelope, the interior, and the mechanical, electrical, and plumbing systems,” it read.
The district was moving in a positive direction, Hopes said, pointing to the recent budgeting and financing efforts. In past years, they relied on historic projects to budget for future construction, leading to unwelcome budget spikes and debates.
Hopes said the district had become more forward-thinking, anticipating the rising cost of labor, materials and aging facilities.
And if the board planned to borrow money, there was no better time than now, board member Dave Miner said on Tuesday evening.
“No better time to finance the equitable facilities that this district wants and needs for the future,” he said.
Miner’s comment was followed by a reminder from board member James Golden: $100 million could go a long way in helping not only the district students and employees, but also the people who work and live in Manatee County.
“There are opportunities here to help the local economy with the expenditure of these funds,” he said.
This story was originally published October 29, 2020 at 3:52 PM.