INFO & FAQs

Click HERE to view the slidedeck from the Community Information sessions. Frequently Asked Questions will be posted here as well. Keep an eye on this page for updates. And if you have any questions, be sure to contact us at MERCOreferendum@mercerschools.org

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GENERAL

1. What options did the board study before moving this plan forward? The board studied as many as 20 different building renovation options and about a half dozen different cost/financing options to get us where we are today. Planning has been extensive. See here for an abbreviated timeline. 

2. Are we still using SRO’s for building safety & security? Yes. Our contract with the Mercer County Sheriff’s Department remains active. 

3. Does federal funding or the federal government impact this project? All federal funding is deposited into our Ed Fund. The status of that funding does not impact this building project. Our Capital Improvement & Bond/Interest Funds are the funds directly impacted by this project.

4. What are some keys to success moving forward? Long-term facility & financial planning are key. Continuous investment in preventative maintenance is key.

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BUILDING

1. Will the new high school cafeteria be larger? Yes. Capacity in the new cafeteria will be 22% more than our current cafeteria (175 people vs. 143 people). The new cafeteria will be 2615 square feet, about 18% larger than the current cafeteria (2200 square feet). The new kitchen will be slightly larger than what we currently have in place as well. 

2. Will the new classrooms be the same size as the ones we have now? The new classrooms will be larger. The standard new classroom will be 765 square feet, about 25% larger than our current classrooms. The new Science classrooms will be 1320 square feet, about 35% larger than what we have now.

3. The plans show 7 more “spaces” than we currently have. Are we planning for an influx of new students, a decrease in enrollment, or our enrollment to stay the same? The new spaces are designed to accommodate modern services and small group instruction for our current enrollment, while ensuring we have space for a mild enrollment increase. According to ISBE fall enrollment counts, 318 students were walking the high school halls during the 2002-2003 school year. We had 416 high school students register for classes this fall. Current enrollment data indicates we will have just under 400 students in the high school next year. 

4. How long will it take to complete the project? Our goal is to begin construction in 2026 and finish in time for the start of the 2027-2028 school year. 

5. Will this project eliminate parking spots? If so, what is the plan to improve parking? Yes. The district has purchased adjoining property & will study opportunities to expand onsite parking when the project officially moves forward. 

6. Will these building plans evolve over time or are they set in stone?  Building design is 90% complete. We will continue working with staff to refine some of the more intricate details to ensure our classrooms/spaces best fit the needs of our students and staff.

7. How will the space occupied by the old classroom wing be used? The plan calls for this area to be transformed into green space. Conversations have taken place to utilize this space for an expansion of our indoor PE/Fitness/Athletic facilities down the road. 

8. Do we have a long-term facilities plan? A detailed long-term facilities plan is in the works. It should be completed by August 1st.

9. If this moves forward, who will do the work? The project would go to bid. We are restricted by law to award the contract to the lowest responsible bidder. We anticipate entering into a contract with a General Contractor. The winner would be responsible for meeting the terms of the contract (bid specs and plans). 

 

FINANCES

1. How are we able to pay the payments on this large new “loan” and not have our tax rate increase? Three significant factors allow us to borrow this money without increasing the school tax rate. One, a private donor has pledged a sizable gift toward future debt payments. Two, annual EAV increases generate additional revenue to meet the increase in our annual bond payment. Three, we’ve structured the bond over 30 years making annual bond payment increases more gradual.

2. Looking at the amount of a person’s “share” of the bond payment, the portions start low the first year, then increase each following year. How does the “share” go up if the rate stays the same? This is primarily due to the value of your property increasing each year. Your “share” also increases in conjunction with increases in the annual bond payment.

3. How are bonds paid back? What is the amount paid back total (bond plus interest)? The bonds will be paid back similar to a 30 year mortgage. We pay primarily interest for the first few years then gradually start to make a dent in the principal. The overall payback value on this bond is difficult to predict, as we believe conditions will be favorable for refinancing down the road. That said, just like a 30 year mortgage, the interest we pay on borrowing money for this length of time is real.

4. Does the calculator on the website differentiate between residential & farm property? Yes. By using “net taxable value” as the input, regardless of what type of property you own, your “share” of the new bond payment will calculate correctly. One thing to note, there are times when the “net taxable value” of farm ground increases at a higher rate than residential or commercial property, and vice versa. That said, the total EAV of all property within the boundaries of Mercer County Schools is just over $250 million. Therefore the “net taxable value” of your property would need to increase or drop significantly to impact your “share” of the new bond payment.

5. I thought that there was a max amount our district could borrow.  How are we able to do this and go over our max? Long-term debt approved by voters does not count toward the district’s Long-term debt margin. Using ISBE’s metrics, we currently have about 44% or $14m in long-term debt margin remaining. 

6. What are the terms of the bonds? If the referendum passes, the district will issue $28 million in bonds payable over 30 years. The “coupon” or interest rate will be fixed for the life of the bond. Current rates indicate we can anticipate a “coupon” or interest rate of 5%. After 8 years, the bonds can be refinanced whenever it becomes favorable to do so. 

7. Is the private pledge secured with a legal binding document to protect the district? Currently we have a contract in draft form. This contract will be finalized and legally approved prior to the district issuing any bonds. 

8. What types of projects are possibly going to be on our upcoming 10-year life safety plan? If the referendum passes, we don’t anticipate many Health Life Safety needs at the high school. If the referendum doesn’t pass, at the high school, we anticipate significant plumbing & sewer replacements, restroom upgrades, and water fixture upgrades in our various labs, as well as exterior tuckpointing. At the junior high, we anticipate some window replacement and potential HVAC work. We do not anticipate a significant amount of Health Life Safety work at our elementary buildings in the 2027 cycle. With regards to Joy, the needs at that facility are unknown at this time.

9. Can renovations at the HS be done with Health Life Safety (HLS) Bonds? Yes. At its core, voters are deciding if we issue larger longer term bonds for some new construction or do we perform HLS updates to the current space? In that regard, here are a few important items to consider.

   • HLS updates are less visible. It’s stuff like asbestos abatement, plumbing/sewer line replacement, and roof work. 

   • HLS updates won’t address issues like cafeteria capacity, secure office set-up, smaller meeting/tutoring spaces, or modern classrooms.

   • HLS bonds are typically structured for a shorter period of time & would more than likely lead to a school tax rate increase. We would pay less interest by making larger bond payments each year, but we would need to increase the tax rate to do so.

10. Have you budgeted for any asbestos abatement? Yes. The project cost estimate includes $375,000 for asbestos abatement.

11. Did we have pre-existing debt at consolidation? Yes. Since consolidation, Westmer taxpayers paid off $455,000 in pre-existing Westmer debt over 6 years. Aledo taxpayers paid down pre-existing Aledo debt by $820,000 over 7 years. This left $855,000 in Aledo debt from construction of what is now Mercer County Junior High. That debt was reissued with a Health Life Safety bond in 2016 in anticipation of the 2017 Health & Life Safety Study. Looking at historical interest rates indicates the pre-existing debt from 2005 had a higher interest rate than what the district could secure in 2016, when rates were at all time lows. One would assume the district tried to issue/reissue as much debt as possible at while rates were favorable. A full bond history going back to 2004 is viewable here.