Beatrice Public Schools, interlocal agency and Beatrice Bank teaming up on school project financing

BEATRICE – Beatrice Public Schools, the Southeast Nebraska Education Agency and a local bank are close to finalizing a financing package for a new prekindergarten through fifth grade school.

"It's a $35 million project. It's a 42-year commitment. Two years is the construction process....40 years is the repayment amortization."

Pinnacle Bank Market President Ryan Trauernicht said during the two-year school construction period, interest payments, only… would be made.
"They are semi-annual payments. We worked that out to they could match up with your tax revenues."  Beatrice Public Schools is building the $40 million school using an interlocal agreement with ESU Number Five and committing the use of the district building fund levy to pay for the project… avoiding additional property tax demand.

Trauernicht says the interest rate on the project will be fixed for a seven-year period at 3.65%.  "After the seven years, it will move based on the municipal market advisors index, which is essentially an index that follows what a fair tax exempt rate would be."  There would be a limit of $10 million spending per year in the project to retain tax exempt status. Anything above that, the issue would not be tax exempt, and at a higher rate of 4.5%.

At the end of construction, the semi-annual payments begin for the district, with the annual payment expected to total about $1.6 million. The closing on the financing package is expected in June. The project will replace three elementary buildings in Beatrice and an elementary converted to a preschool. All were built in the 1950s. Construction would be completed in the summer or fall of 2024.

Superintendent Jason Alexander says there is some movement on what would happen with the old buildings. "We've had discussions with local contractors and with local developers, on the possibility of those sites becoming sites those folks would be interested in purchasing and turning into local housing....so that's one option that's been discussed."  Because of the era and codes in place when the schools were constructed, Alexander says they qualify as Brownfields projects.
"Because of the lead paint, the asbestos, the piping that's in there that has high copper nitrates, high lead nitrates. We have what are called Brownfields on our hands, and so work must be completed prior to the redevelopment or resale of those particular buildings."

The district has applied for grant support for help in handling Brownfields projects, including monetary and technical assistance. Alexander says preliminary work has begun with Kansas State University landscape architecture and regional planning departments.  Grant applications have been submitted to state environmental officials to assist in removing hazardous materials such as asbestos…estimated to cost $25,000, per site.

In other action from Monday night's Beatrice School Board meeting...

BPS will charge more to offer the optional pay-to-ride bus service parents can use for their children. The Board of Education approved an increase in the annual fee from the current $130, to $160. Assistant Superintendent Dr. Jackie Nielsen says the increase is needed to help cover higher costs.  Parents can pay the fee monthly during each school year.

The District 15 Board Monday night also finalized contracts for various staff members of the district. Classified wages will see a 15-cent hourly rate increase, along with increases in classifications for starting workers and those with the most longevity. The overall package is a 2.98% hike.  For a half-dozen contracted positions in the district, the board approved a 2.97% package increase. For administrative staff salaries and benefits, the board passed a 2.98% increase.
The contract changes add a total of about $197,000 to the district’s overall budget.

The board also approved an amendment to the district’s policy to pay a higher rate for substitute teachers that serve short or long-term substitute periods for an instructor.  An agreement with ESU Number Five was approved, to continue technology services for the district, at a cost of $107,715….a slight increase from the current contract.  A social studies textbook purchase was approved for grades three to five….at a cost of just over $51,000.