New Kent supervisors weigh funding options for school capital projects

After hearing concerns about population growth in the county and how local schools’ enrollment continues to rise, New Kent’s Board of Supervisors reconvened Wednesday morning to address financial options available to resolve the issue.

As part of the continuation from the Oct. 11 regular meeting, county leaders met with financial advisor Ted Cole of Davenport and Company on addressing potential needs of both the county and school system.

A packet distributed to supervisors contained information of different financial approaches to potential projects. Those potential projects include the construction of a new fire station (pegged at a funding of $2.2 million), a new elementary school ($25 million), expansion at the middle school ($2 million) and renovations at New Kent Elementary ($14 million).

Cole presented two cases addressing the future financial needs. Case one was the financing of the fire station, new elementary school and middle school expansion. Case two included all of case one, but with the addition of the elementary school renovation.

Each of the cases had the same four scenarios, bringing the total number of options to eight. Scenario ‘A’ focuses on having an annual transfer to debt service fund equal to the existing county and school debt service with no additional school money set aside. Scenario ‘B’ is similar to the aforementioned one, with the exception that the debt service fund will remain equal to the FY2017 budgeted level (currently at $5,680,307). Scenario ‘C’ mirrored the first scenario, with the only change to include having additional school money set aside, while ‘D’ duplicated ‘B’ with the only change to include having the school money set aside.

Supervisors mulled over the options, with Cole noting that while taxes may not be raised, there would have to be some type of financial contribution to the schools. An example presented was under Option 1, Scenario ‘A’, at least 10 cents would needed to be set aside for school construction.

One of the choices easier on supervisors’ eyes was Option 1, Scenario ‘D’ that focused on keeping the current debt service as FY17 with the school set aside funds. If things play in favor for the county, only six pennies would be needed to assist in the construction of an elementary school and middle school addition.

Cole noted to supervisors that all of the budgeted numbers do not account for an increase in economic growth coming into the county or the value of a penny from taxes in future years. The financial advisor also said that some of the proposals may conflict with county policy in regards to debt, but also indicated there are exceptions that would allow supervisors to review the issue. Cole concluded that if supervisors did elect to maintain the $5.68 million debt service fund, it would need to be maintained at that level for the next 25 years.

As board members digested more than 50 pages of financial input, focus turned to the immediate needs of schools, specifically the expected influx of students into the county’s middle school.

“Speaking with [New Kent School Superintendent] Dave Myers, the fourth and fifth grades are the worst,” said District 1 supervisor Thomas Evelyn. “When the fourth grade moves up next year, they are already expecting three additional classrooms will be needed.

“We might want to think about getting this addition to New Kent Middle School started,” he concluded.

“Right now, that would be the best project to start with,” chimed in District 5 leader Ray Davis as he spoke on the $2 million price tag. “That is going to give us the biggest bang for our bucks.”

“I can definitely see that is going to be our greatest need in two years,” added District 2 supervisor Tommy Tiller.

With supervisors in agreement, $25,000 was allocated from the contingency fund for the study of the expansion of New Kent Middle School. As far as financing the other projects, District 4 supervisor and chairman Ron Stiers maintained his stance on keeping taxes low.

“I have had conversations with [county administrator] Rodney Hathaway and expressed to him that I want to spend any new money on new projects instead of putting this construction on the back of taxpayers,” Stiers said. “With our growth I believe it will be possible to support these penny increases without coming out of the pockets of our citizens.”

Hathaway elaborated that the time frame for instituting a plan for a new school is rapidly approaching, presenting a draft project schedule that list a 2021 fall opening.

“If we want this to happen by then, we have to get serious around the end of this year,” the county administrator commented. “There are several steps that will take place and one of the key ones is identifying potential sites.

“We received a map of where school kids are located in the county,” Hathaway said as he wrapped up his comments. “A new elementary school will require a lot of things including redistricting lines and that takes a very long time.”