The Hoover School Board plans to spend more than $ 98 million on capital projects over the next seven years, including two new elementary schools, an addition of 10 classrooms at Bluff Park Elementary School, improvements to the theater and sports, 24 new buses and a host of capital maintenance. projects, according to a plan approved by the board of directors on Monday evening.
The capital spending would reduce the school system’s reserves by more than $ 50 million, according to figures shared by CFO Michele McCay.
The school board expects to end the current fiscal year with $ 99 million in reserve, so unless additional revenue streams are found, it is likely that the reserve fund will drop to around $ 49 million d ‘by the end of fiscal year 2028 if spending is proceeding as planned.
That would give the school system enough money to cover three months of expenses, compared to 11 months of expenses that could be covered now, McCay said.
State officials recommend school systems keep two to three months of spending to cover emergencies, McCay said. She prefers to keep about seven months of spending in the system’s bank account, but could still be comfortable with five months of spending, she said.
The problem is, the school system is expected to drop below five months of reserves in about three years, she said.
In the past, school officials have been good financial managers, not having had to borrow additional money since 2007, but “we’re getting to the point where we have to make some pretty tough decisions,” McCay said. .
The school system expects to end this fiscal year with a debt of $ 153 million and should be able to make payments on this debt with recurring revenue, but “we need to find additional sources of revenue in order to keep it going. infrastructure we have. and provide the services our citizens and students deserve, ”she said.
This is especially true because tax and tax revenues are vulnerable, and even the value of commercial property could drop as physical businesses and the office market go through a rough patch, McCay said.
The future construction of the approved residential growth in Hoover poses financial challenges for the school system, she said. The developments that have already been approved are expected to generate more than 2,000 new students for the system, she said.
The school system needs to find money for land, buildings, additional furniture and fixtures, utilities, food, buses, fuel, teachers and staff to serve all of these students, said. McCay.
USS Real Estate has agreed to donate 100 acres to the Hoover Board of Education on land currently just outside the city limits of Hoover off Alabama 150, adjacent to Cyrus Lake, but officials of the school should always pay the costs of building and operating any new school. it would go there.
School officials have not specified what type of school could go there, but the capital plan approved Monday night identifies the need for two new elementary schools somewhere.
School officials estimated that they would need to spend $ 20 million to build the first primary school in fiscal years 2023 and 2024 and an additional $ 20 million to build the second in fiscal years 2027 and 2028.
“I don’t think there is any doubt, if we accept two new elementary schools in the next few years, we will have to have additional income to compensate for the loss of income that arises from sales taxes”, member of the school board . Craig Kelley said. And “we don’t know what’s going to happen with the value of real estate for ad valorem [property tax] purposes.
Currently, Hoover residents can vote to raise their property taxes by just $ 2.4million before they reach the maximum of $ 75million allowed by state law, but it will take an additional $ 10-12million to collect the $ 16million. more dollars per year that the Hoover school system will likely have to meet the demands for growth, Kelley said.
The city will likely need a statewide referendum to achieve this, and Homewood failed to accomplish a similar effort a few years ago, he said.
Kelley said he would like to see the City of Hoover revert to its practice of giving a building permit fee to the school system on top of the city’s other allowances instead of being part of a global cash contribution of $ 5. million dollars a year.
Typically, the city requires home builders to pay a building permit fee of $ 1,500 for each home they build, but Signature Homes and US Steel have each agreed to pay a building permit fee of $ 3. $ 000 for homes in new developments.
Kelley said some board members assured her they wanted to start making that full contribution to the school system instead of including it as part of the $ 5 million annual cash contribution. But a few board members prefer the school system to seek more money from property taxes instead, he said.
Here’s a breakdown of planned capital spending over the next seven years, by year:
Fiscal year 2022:
- Hoover High Theater Upgrade ($ 5.3 million partial payment)
- Roofing projects at Simmons Middle and Greystone and South Shades Crest elementary schools ($ 4.7 million)
- Modernization of the Spain Park High theater ($ 2 million)
- Bathroom upgrades ($ 1.25 million)
- Bluff Park Elementary School Cooling Tower Replacement ($ 1.2 million)
- Architectural services for the new elementary school ($ 1.12 million)
- Twelve new 72-passenger buses ($ 1,050,000)
- Mechanical upgrade at Gwin Elementary ($ 1 million)
- Flooring projects ($ 599,000)
- Architectural services for the addition of 10 classrooms at Bluff Park elementary school and sports improvements at Berry and Bumpus colleges ($ 576,000)
- Paving projects ($ 570,000, including $ 500,000 for a road behind Hoover High)
- Playground repairs ($ 300,000)
- Lighting projects ($ 180,000)
- Painting projects ($ 180,000)
- Security Camera Refresh ($ 120,000)
- Locker Upgrades at Simmons Middle School ($ 80,000)
- Central Office Awnings ($ 30,000)
Total cost for fiscal year 2022: $ 20.2 million
Fiscal year 2023:
- New elementary school (Partial cost of $ 10 million)
- Complete the Hoover High Theater upgrade ($ 5 million left)
- Addition of ten classrooms at Bluff Park Elementary School ($ 4.5 million)
- Sports Improvements at Berry and Bumpus Colleges ($ 4.5 million)
- Roofing projects at Brock’s Gap Intermediate and Gwin Elementary ($ 1.5 million)
- Heating, ventilation and air conditioning conversion ($ 1.3M)
- Bathroom upgrades ($ 1.25 million)
- Addition of a transport building ($ 1.2 million)
- Twelve new 72-passenger buses ($ 1,050,000)
- Flooring projects at Spain Park High and Green Valley elementary schools and Trace Crossings ($ 600,000)
- Paving projects ($ 300,000)
- Lighting projects ($ 300,000)
- Installation of launderers at Bumpus Middle ($ 200,000)
- New playground at Riverchase Elementary ($ 180,000)
- Painting projects ($ 180,000)
Total cost for FY2023: $ 32 million
Fiscal year 2024:
- Primary school completion ($ 10 million)
- HVAC projects ($ 1.2 million)
- Roofing project at Rocky Ridge Elementary ($ 600,000)
- Lighting projects ($ 320,000)
- Paving projects ($ 300,000)
- Extending the canopy at Greystone Elementary ($ 200,000)
- Flooring projects ($ 200,000)
- Painting projects ($ 180,000)
Total cost for fiscal year 2024: $ 13 million
Fiscal year 2025
- Roofing projects ($ 1.2 million)
- HVAC projects ($ 800,000)
- Lighting projects ($ 320,000)
- Paving projects ($ 300,000)
- Flooring projects ($ 200,000)
- Painting projects ($ 180,000)
Total cost for fiscal year 2025: $ 3 million
Fiscal year 2026:
- Roofing project ($ 1.2M)
- Architect’s fees for another elementary school ($ 1.12 million)
- HVAC project ($ 800,000)
- Lighting project ($ 320,000)
- Paving projects ($ 300,000)
- Flooring projects ($ 200,000)
- Painting projects ($ 180,000)
Total cost for FY2026: $ 4.12 million
Fiscal year 2027:
- New elementary school (Partial cost of $ 10 million)
- Roofing projects ($ 1.2 million)
- HVAC projects ($ 800,000)
- Lighting projects ($ 320,000)
- Paving projects ($ 300,000)
- Flooring projects ($ 200,000)
- Painting projects ($ 180,000)
Total cost for fiscal year 2027: $ 13 million
Fiscal year 2028:
- Primary school completion ($ 10 million)
- Roofing projects ($ 1.2 million)
- HVAC projects ($ 800,000)
- Lighting projects ($ 320,000)
- Paving projects ($ 300,000)
- Flooring projects ($ 200,000)
- Painting projects ($ 180,000)
Total cost for FY2028: $ 13 million
Editor’s Note: This article was updated at 10:54 a.m. with the full list of planned capital projects and estimated costs once the written plan was provided on Tuesday, June 15.
