At the July 24 meeting, City Council will hear a second reading on an ordinance to authorize a general obligation bond issuance for up to $120 million for a renovated high school and a portion of the middle school. If this passes, the Circuit Court would then need to order a special referendum to be placed on the November 2017 ballot. The meeting will take place in Council Chambers of City Hall (map) at 7:30 p.m. The meeting will be streamed live via this website and broadcast live on FCCTV (RCN 2, Cox 11, Verizon 35).
This presentation refers to a modified Capital Improvements Program (CIP) that delays the Library renovation, TJ Elementary School improvements, and other CIP projects until after a portion of the school campus is sold for economic development ("land transaction").
Included in the City's presentation is analysis of how robust economic development on the campus could impact the City’s budget and taxpayers.
Assuming the project is funded through a 30-year municipal bond with an interest rate between 3.5% and 5% the annual debt service cost for this project can be projected to be approximately $6.5 million per year once the full amount of the debt is issued. It is anticipated that the debt would be issued in phases over a three-to four year period. This increase in debt service will be factored into the FY2019 annual budget and thereafter.
As part of the financing plan for the High School, the City anticipates that a portion of the campus land would be leased or sold to allow for commercial development. However, the value of such a transaction is not expected to cover the full cost of the annual debt service. It would, however, reduce the impact on the tax payers if the sale/lease occurs in a timely manner and if current market conditions hold.