Hamilton County Commission to consider issuing up to $250 million in bonds for school projects

Commissioners could take the first step later this month by borrowing up to $250 million for a series of school construction projects, which Superintendent Justin Robertson said would be the largest bond issue of the history of Hamilton County schools.

“I don’t want to miss the opportunity to recognize this historic moment and its importance to our school system,” Robertson told the Hamilton County Commission on Wednesday.

The commission will consider the item at its next regular meeting on June 26. The board of directors will not meet on June 19 in recognition of June 19.

(READ MORE: Five takeaways about how Hamilton County schools are performing according to the state report card)

As the panel prepares to issue bonds, Commissioner David Sharpe, D-Red Bank, said Wednesday it would be prudent for the county to explore different ways to finance these types of projects.

“You will never borrow your way out of debt,” Sharpe said at the meeting. “When it comes to Hamilton County school facilities, we are indebted to our community. Continuing to do what we’ve done for the last 40 years, borrowing money and paying about a third of that money in interest doesn’t seem like a solution. get us out of this situation.

Sharpe said the county must get creative to avoid the significant cost of debt, even if it requires creating a new dedicated revenue stream.

“There’s not a lot of maintenance going on (in Hamilton County schools),” Sharpe said. “It’s repairs. We don’t maintain things in Hamilton County Schools because they haven’t had the revenue to do that over time. They just fix things when they’re broken – if there is enough money to repair them.”

Commissioner Lee Helton, R-East Brainerd, said county leaders have been discussing the need for new facilities for nearly two years and issuing bonds would give officials an opportunity to put shovels in the ground .

“When it comes to single funding sources, we can dress them up in whatever words we want, but at the end of the day, it’s a tax increase we’re talking about,” Helton said, in response to Sharpe. “Right now the economy is kind of tough. My people don’t have the courage to endure it. We can call it what we want, but it means more money out of their pocket. Until let them show their will, that The commissioner will not advocate something like that.”

Sharpe said he’s not surprised Helton voters oppose a tax increase. The Helton district, Sharpe said, has the most modern school facilities in Hamilton County.

“I am not, even once, suggesting that this body pass a tax increase to fund school facilities,” Sharpe said. “Because we don’t have to.”

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Several Tennessee counties have significantly improved their educational facilities with the help of a local sales tax, Sharpe said. Hamilton County raises money for schools through its 2.25% local sales tax, although state law allows the county to increase that amount to a maximum of 2.75%. if he wishes. This must receive voter approval. Half of the tax must finance education.

Mayor Weston Wamp told commissioners the county has budgeted conservatively over the years and operated with a surplus. The bond issue will support at least seven major projects and dozens of deferred maintenance needs at local schools, Wamp said.

“We’ve put a lot of effort into doing this right and doing it within the conservative traditions of the county,” Wamp said at the meeting.

(READ MORE: Hamilton County Schools Superintendent Calls on Community to Lift Up Teachers During State of System)

Last August, a task force formed by Robertson and Wamp released a series of school facilities recommendations aimed at addressing some of the deferred maintenance needs in the district.

The Hamilton County School Board then adopted a final list of priorities in January. They include renovating a former BlueCross BlueShield building along Highway 27 into a middle school; build a new Clifton Hills Elementary School and Soddy Daisy Middle on their existing campuses; and combine Alpine Crest, Rivermont and DuPont elementary schools into a new building on the DuPont Elementary School site.

Although county officials are still evaluating the best possible order to complete the projects, Wamp said in an interview that he expects the new DuPont Elementary School to be the first to be funded by bonds.

Contact David Floyd at [email protected] or 423-757-6249.