A member of a steering committee that led a successful school bond campaign asked board members for an update on the financial impact of the project.
Ray Maloney of LaHarpe, a steering committee member known for his careful consideration of financial matters during the 2019 campaign, attended Monday’s budget hearing.
He wanted to know if the district had realized the kind of savings expected from combining three elementary schools into the new Iola Elementary School.
He also asked if the district had reduced staff, or attracted or retained quality staff as expected after opening the new school. Finally, he wanted to discuss interest rates and taxes related to the project.
“I’m pro-education but I’m also a taxpayer,” Maloney said. “And education is a big part of our property taxes.”
The district’s savings on utilities have not reached the level as predicted, board member Dan Willis conceded. There are several reasons for that, he said, though he expects to see more savings over time.
First, the district continues to maintain the three former elementary schools under an agreement with BNIM, a Kansas City development group. BNIM is working to obtain various types of funding to convert the three buildings to apartments. They have two years to work toward that goal.
Meanwhile, two groups are renting space at Lincoln and McKinley, and reimburse the district for utility costs.
The district’s utility costs also have increased significantly since the bond issue was passed, Willis said. The year prior to moving into the new school building, the district’s utility costs had increased by 40%, he said. The first year in the new building, costs were up 28%.
“We lost all the efficiency we were ever going to gain just with utility rate increases,” Willis said. Willis also noted the new building is 25% larger than the three former schools combined. The new infrastructure is more efficient, but there is more space to heat and cool. The school is also busier, hosting community events and additional school activities.
AS FOR reduction in staff from combining three schools into one, Superintendent Stacey Fager said the district reduced staff by seven positions when the new school opened last year.
However, much of the salaries from those positions were needed to offset increased costs such as insurance and higher wages, he said.
“We did have savings, but that helped buffer what we could offer for an overall package,” he said.
This year, for the first time, the district is asking staff to pay part of their health insurance costs. Fager said the district’s insurance provider initially proposed a 23.7% increase that was negotiated down to 8%.
A health insurance plan the district previously covered entirely will now cost $50 per employee. That led some employees to shift to a health savings account with a higher deductible plan.
