November 4, 2008 Hermiston School District Bond Measure

Q: Why doesn’t the District use their general fund budget to pay for school replacement and major repairs?
A: The State of Oregon does not provide schools additional funding for capital construction and major improvements. The current general fund operating budget for the District is 36.4 million, where 73% is spent on teaching and student resources, 15% on transportation, food service and maintenance, 6% on building support services, 4.5% on District Office support, and 1.5% on business and technology services. Capital construction projects require local authorization through the issuance of voter-approved bonds.

Q: Why doesn’t the school District purchase more portable buildings to handle enrollment growth?
A: The Board of Education supports the use of portable classrooms for temporary and short term enrollment fluctuations. However, with an estimated growth of 1000 additional students by 2016, this would necessitate 25 additional portable structures to the current 10. These structures are not physically suited to serve as permanent capacity solutions.

Q: Why is the District recommending replacement rather than remodeling the older schools?
A: Comprehensive third-party evaluations of Hermiston’s four oldest complexes recommend replacement. Failing infrastructure (foundation, plumbing, sanitary system) coupled with current building design reveal major renovation initiatives to be cost prohibitive.

Q: Why not just change boundaries to alleviate elementary and middle school overcrowding?
A: All elementary and middle schools are at or nearing their maximum student capacity.  No increase in capacity would result from a modification of attendance boundaries.

Q: My children go to _____________ school. What’s in it for my kids?
A: Every school in the District would derive benefit from the bond measure. Three schools would be completely replaced (Armand Larive, Sunset and West Park). At other locations, schools would receive physical improvements or upgrades unique at each location (such as roof repairs, heating, ventilating and cooling systems, replacement or repair and flooring, and improved access to technology). A complete list of these planned improvements can be found on our bond website.

Q: Would any money from the election go to teacher or administrative salaries?
A: No. This election is a capital referendum. Expenditures are specifically limited by law to build, equip and refurbish facilities.

Q: How much would the bond cost?
A:  Property owners would initially pay approximately $1.40 per $1,000 of assessed value per year.  This amount is about $11.67 per month (or $140 per year) on a home with a taxable value of $100,000. With the retirement of previous bonds the total school bond rate is projected to remain stable over the life of this issue.

Q: How long will the bond term last?
A:  A capital construction bond is similar to a home mortgage. The District sells bonds to acquire the funds needed for all construction projects, a process that would take about three years. The debt created by those bond sales would be paid back using tax receipts over a period of 20-25 years.

Q: Would funds from the bond be used to pay for new staff, salary increases, or new programs?
A: No. By Oregon law, funds raised by a capital construction bond can only be used to build and equip new facilities, buy land, and expand or remodel existing facilities.

Q: What happens to students while their schools are rebuilt?
A: The District anticipates that each project will allow for students to remain in their current school until their replacement is finished. The Armand Larive Middle School replacement will be built on an alternate site. West Park and Sunset Elementary schools will be replaced with structures constructed adjacent to the existing schools.

Q: Will the replacement schools be the same size as what they replace?
A: The District standard for design of new elementary schools is 550 students and 800 students for new middle schools. These standards represent a modest increase over current sizes consistent with our instructional programs. This modest increase in school size will NOT result in increased classroom loads or increased student to teacher ratios.

Q: If enrollment growth is a primary concern, why did you not include a new elementary school in the bond?
A: Based upon anticipated growth in student enrollment, a new elementary school will be needed in 2016.  This bond package includes an expanded number of classrooms and a modest increase in school size at Armand Larive, Sunset and West Park. This modest approach will permit schools to more appropriately serve students who are presently receiving services in portable classrooms. These schools will be replaced with new buildings appropriately configured with an adequate number of classrooms, gymnasium, library and other spaces designed to serve this population. In total, this bond program will add spaces for approximately 500 students.

Q: I have heard that the District is considering purchasing the old hospital property site?  Why are you interested in it?
A: Community members regularly lament the presence of the abandoned community hospital located adjacent to West Park Elementary School. In partnership with the City of Hermiston, Umatilla County, Good Shepherd Hospital and other charitable groups, the Hermiston School District is exploring the potential benefits of pursuing the acquisition of this site. The immediate benefit to the School District is that the site would allow construction of a replacement West Park campus while students continue to attend their current school. Other benefits would be the reduced safety and security risk posed by the current facility.

Q: Won’t it be expensive to tear down the dilapidated hospital building?
A: The current West Park campus lacks appropriate space to construct a new school on site.  Without additional property this would require the District to shuttle West Park students to the vacated Armand Larive School while their school is being torn down and replaced.  This “shuttle” scenario would require the District to prolong the start of the West Park project until 2011.  Inflationary cost estimates to prolong the West Park project appear to outweigh the preliminary estimates to abate and demolish the old hospital complex.

Q: Given the fast-rising cost of construction, is this bond enough to complete all promised projects?
A: Over the last three years, construction costs have been climbing at about 1 percent per month or 12 percent per year. The District’s bond estimates were reviewed in early 2008 and adjusted to reflect anticipated inflationary cost escalation.  There is also a 6 percent reserve fund in the bond to respond to unforeseen situations. The District is pursuing an aggressive construction schedule to move projects forward as quickly as possible, while costs are lower.

Q: After construction of the new Armand Larive Middle School, will the old school be demolished?
A: The bond program includes sufficient funding for the abatement and demolition of the current facility.  The Board of Education has not made a final determination as to disposition of this property.

Q: Where will the new Armand Larive Middle School be?
A: The District owns approximately 47 acres adjacent to Desert View Elementary School.  This site was purchased over twenty years ago with the intent for a middle or high school facility.  The expanded campus will allow for improved school and community use.

Q: Is there a bid process for bond projects?
A: The process for selecting contractors varies under Oregon law, depending on the size of the contract. However, all the selection options require the District to publicly advertise the contract, and require contractors to submit competitive sealed bid proposals.

Q: How many bonds do we have out currently, and when do they expire?
A: There are two bonds currently outstanding. The 1994 (Sandstone Middle School) bond will expire in 2014 and the 1999 bond (High School and Desert View) will expire in 2019. These two bonds currently create a charge of about $3.04 per $1,000 assessed or taxable value.  This amount will continue to go down as the community grows and new residents and businesses participate in paying for these facilities.

Q:  How can I be assured that bond proceeds would be spent wisely and in accordance with what I vote for?
A:  State law requires that all bond proceeds be spent for only those activities specifically authorized in the ballot question presented to voters.  To assure this, the District would establish a separate account to manage these funds and a special accounting structure to track every monetary transaction.  This account will be subjected to regular, annual audits by a qualified, independent accounting firm.  Further, the District would establish a citizen’s Bond Oversight Committee to periodically review construction activities, change order management, and authorized changes to project scope or budget based upon direction from the Board of Education.  The community can expect regular communications in the form of newsletters and web updates for each project.

For further questions please feel free to contact the District at 541-667-6000.