In less than five weeks, voters will decide whether the borough should borrow $12 million to repair the schools and Public Safety Building.
On Aug. 23, the borough assembly unanimously approved placing two questions on the Oct. 4 municipal election ballot that will ask voter approval to cover the renovation costs.
One of the ballot issues would approve borrowing $8.5 million to repair the water-damaged Public Safety Building, while the other would approve borrowing $3.5 million to help fund repairs at the elementary, middle and high schools.
Though anticipated school repair costs total $10 million, the borough hopes to cover the majority of the work with a grant from the state Department of Education.
In issuing bonds, the borough would make a commitment to repay the borrowed money. If the bonds are approved by voters, the debt would be repaid out of borough funds, likely using a combination of property taxes, federal and state dollars, and investment earnings from Wrangell’s $10 million Permanent Fund.
Using a 20-year debt and 4% interest rate for their calculations, the borough estimates that annual payments on the school bonds could be $413,000 per year, while payments on the Public Safety Building could be $628,000.
Voters may approve one, both or neither of the bond issues.
Wrangell paid off its last school bonds more than three years ago, leaving the borough clear of debt. The last bond issue was in 2010 to help pay for playground improvements at Evergreen School.
Much of the work that would be funded by the proposed bond issue would cover siding and roofing, new windows and heating system boilers, ventilation upgrades and other long-deferred maintenance. The school buildings are several decades old.
At the Public Safety Building, water has intruded into the walls, requiring repairs and a new pitched roof and new siding to maintain its structural integrity, according to borough officials.
Borough Manager Jeff Good stressed the necessity of the repairs at the Aug. 22 assembly meeting. “The (Public Safety Building) bond is for siding and roofing on a 37-year-old building,” Good said. “Usually, you replace siding after 30 or 40 years.” Investing in the buildings now will prevent even greater costs in the future, he explained.
Assemblymember Ryan Howe also emphasized the importance of doing repair work sooner rather than later on all the buildings. “Eventually, the buildings will all fail,” Howe said. Paying the bill for structural repairs and mechanical issues will be much cheaper than waiting until the buildings’ state of disrepair reaches crisis levels.
Patty Gilbert, vice-mayor, suggested that the assembly strive to explain the importance of the repairs and the bonds’ potential impacts to the public.
A sunset clause — guaranteeing that whatever property taxes are levied to pay off the bonds will end after the bonds are fully repaid —was added to the ordinances setting up the ballot measures.
The assembly also created a special committee to inform the public about the repairs and the effect the bonds might have on household finances. The committee will include Good, Finance Director Mason Villarma, and assembly members Anne Morrison and Gilbert.
In the coming weeks, the committee will draft and distribute a brochure to raise awareness about the bond issues in advance of the election. Many assembly members expressed concern that if taxpayers aren’t fully informed about the necessity of the long-awaited repairs and how the borough could repay the debt, the ordinances will not pass.
Villarma hopes the borough can maximize the use of other funding, including federal and state dollars and investment earnings, to decrease the burden on property taxpayers.
Howe was apprehensive, however, about anything that could reduce borough funding for school operations. “I don’t want them to lose shop classes,” he said.
Reader Comments(0)