Federal construction grant to save UCS taxpayers more than $10 million over 15 years
A federal grant that is estimated to save UCS taxpayers more than $10 million in bond costs over the next 15 years has cleared the way for a series of voter-approved renovations and construction.
The UCS Board of Education on Jan. 10 unanimously authorized $14.25 million in bonds, the second set sold as part of a $112.5 million bond issue approved by voters in 2009. Thanks to a successful federal grant application by UCS officials, the bonds are being sold with virtually no interest costs to UCS taxpayers.
"This is great news for our community," said Dr. Christine M. Johns. "The grant protects our taxpayers during these economic times and allows us to move forward with improvements that will ensure our students are learning in 21st Century facilities."
The federal funds were made available through the recent stimulus act to promote school construction programs. District officials initially had a 48-hour window to apply for the funds last October.
Dr. Johns credited the successful application to Stephanie Eagen, assistant superintendent for business services, and Mark Davey, assistant superintendent for auxiliary services.
“We were positioned to take advantage of this grant offer only as a result of the hard work of our staff,” Dr. Johns said. “Ms. Eagen and Mr. Davey worked quickly to make sure we were able to take advantage of this federal funding and create this significant savings for our community.”
Voters initially approved a $112.5 million bond issue in May, 2009 to fund school renovations, address equity issues between facilities, improve technology, and improve safety and building infrastructure across the district.
Since the sale, district officials have been managing the sale of bonds to offset its impact on local millage rates as a result of decreasing property values. Since the bond approval, UCS has issued only $22.5 million of the bond issue in anticipation of an economic recovery.
"We have been carefully managing the sale of the voter-approved bonds to ensure we meet our fiscal responsibility to UCS taxpayers," Dr. Johns said. "These federal funds will ensure we continue to protect the investments our community has made in their schools in a way that addresses the current economic climate and its impact on property owners."
The Board’s action authorized district officials to work with underwriters to determine the best possible time to sell the bonds given current market conditions. The formal sale is expected in February.
The bonds approved by the board include significant improvements to Utica High School, including a new media center, renovated classroom space, mechanical and heating improvements, relocation of offices and enhancements to improve overall building security. In addition, district officials are finalizing plans for additional technology and school construction projects across the district.
Under state law, bond funds may only be used for construction-related projects and cannot offset operating costs.
The projects were identified by the Citizens For Education Project, a coalition of more than 750 parents, community members and employees.
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