District pulls from ballot

CASTALIA — At the Margaretta Schools board of education meeting on Wednesday, members voted to withdraw a bond that would have supported the cost of constructing a new K-12 building. The district wants to construct a new building due to the age of its current ones. Assessments of the district's current buildings show the middle and high school facilities cannot be effectively renovated due to their ages. The district, earlier this year, placed an issue on November's ballots that would have asked voters to approve a 3.2-mill bond issue that would have generated $34 million over a 40-year period. If approved, a $100,000 homeowner would have paid about $113 per year. But Wednesday's vote means that tax measure has been shelved, for now, and administrators will consider alternatives to fund the new construction. Factors to the decision The bond would have funded a long-stalled construction project to build a pre-K through high school campus that's been held up by a state Supreme Court case involving funding from the NEXUS pipeline. The pipeline carries natural gas across 13 counties from Kensington, Ohio, into Michigan. It began serving customers located in Ohio, Michigan and Canada in 2018. Local districts that benefit from the taxes generated by the pipeline include Margaretta, Perkins Schools and Edison Schools. Margaretta Schools had been counting on the pipeline dollars to help fund the construction of a new school. The district is one of many northern Ohio school districts still awaiting money from the project — delayed after an objection from Lorain County auditor Craig Snodgrass to the settlement amount. The state's Supreme Court ruled in favor of a state tax appeals board over Snodgrass. Snodgrass did not file to reconsider, so the negotiated settlement decided by the tax commissioner will go back in place, meaning NEXUS should be paying more to Margaretta Schools than it has been in the past few years. The amount of revenue Margaretta would receive annually would vary and decline over time, due to depreciation. But the district, at minimum, is expecting at least $4 million annually — though that amount could end up being higher, district treasurer Diane Keegan previously told the Register. District officials believe it will still be months until Margaretta Schools sees increased revenue from NEXUS. According to Keegan, inflation is another factor in the project, which is estimated to take up to two years to complete. The price was initially placed at about $49 million, but projections show it being closer to $70 million. About $5 million has been paid already in the form of architecture fees, site work and utility work. The district estimates paying another $5 million off of its principal and financing the remaining $60 million. Asking for support The Ohio Facilities Construction Commission, a state agency that helps schools with construction projects, is poised to assist the district with financing for the project. The district's plan was to have the commission cover 38% of total project costs while the levy would cover the funding gap, providing the remaining 62% without the pipeline money in place. To receive assistance from the commission, the district had to show progress was being made on the project. Now that the bond is off the ballot, the district said it will strategize again with the commission in mind. At the Wednesday meeting, superintendent Ed Kurt said he would schedule a meeting with the commission to discuss what had happened to the district with NEXUS and discuss a plan for future contributions from the commission. If the commission turns down the district's request, officials will once again pause the project and regroup. Kurt said the district would consider a bond issue on the May ballot to be able to move forward. Wednesday's meeting Board members discussed their concerns before unanimously voting to pull the bond issue from the Nov. 5 ballot: • Board member Elmer Lippert questioned how the district would look if they went to the community asking for money when voters are under the impression the project would be funded by the NEXUS pipeline. • Board president Angie Tucker said the November ballot is a tough one to be on due to the other issues and candidates to be voted on. • Kurt mentioned the project is a "race against time" with inflation and the delays. • Keegan said going to the commission is an option, but its history with supporting other districts shows it is better to use them as a last resort and show prior efforts in finding funding through other avenues. • Board member Josh Hula agreed and doubted the new bond will pass. • Board member Paul Schoenegge raised the concern about this issue affecting the odds of the district's renewal levy passing. The district still has a renewal levy on the ballot. Funds will go toward the district's emergency requirements. If approved, this 3.45-mill levy will generate about $1 million over a five-year period. This means a $100,000 homeowner will pay $109 per year. Kurt said this levy would ask for no additional money from voters and keep NEXUS's commitment level where it is now. He said the $4 million annual payment from NEXUS is part of this equation.