A proposed restructuring of debt by Anderson County Schools has the potential to advance an important part of the school system’s mission – to help all our students soar in a global society.
As a homeowner refinances a mortgage to take advantage of lower, fixed-interest rates to make important investments in a family’s future, the school system has the chance to gather up several variable-rate loans and extend routine indebtedness to make important – and necessary – investments in the future of our community.
The plan would not increase our annual debt payment, but it would create a lower, level-payment structure for a few more years to accommodate real need. The debt can be paid off in advance if conditions allow, with proper notices.
Because we were aggressive in paying down our debt when the economy was better, we have the chance to lock in debt for 19 years at lower interest rates than we are currently paying.
Converting all of our interest from variable to fixed rates helps improve the county’s bond rating and gives us a chance to accomplish several important tasks with little risk:
PROVIDE AN ADEQUATE ALTERNATIVE SCHOOL
Eleven years ago, ACS took on year-to-year rental of the former Armory building on the Anderson County Fairgrounds to house The Learn Center. It is in this facility where the school system works to meet the needs of kindergarten-through-12th-grade students from throughout the system who require alternative education services.
The Learn Center has been overcrowded almost since the beginning; last year, more than 250 students were assigned there because of their special needs. While parents or guardians of students assigned to The Learn Center must provide their children’s transportation, the school system is still required to ensure that there is an appropriate program of instruction.
That is becoming increasingly difficult, both because of the limitations of the rented facility (and the school system’s inability to make permanent changes), and because of the growing requirements of the students who need the center’s services.
Refinancing our debt will let us move The Learn Center to space that can accommodate the education and training programs necessary for these students – many of whom are at high risk for failure.
CONSOLIDATE WIDESPREAD ADMINISTRATIVE FUNCTIONS
Refinancing the debt will allow the school system to bring its central administration functions together for more effective and efficient operation. It also will free up space the county commission has identified for a justice center it clearly needs – something that is part of the county’s current five-year plan.
Bringing our administrative staff under one roof – off the fifth floor of the Jolley Building, where nearly 50 employees currently work; out of the technology building on Broad Street, the adult education trailers on Seivers Boulevard, and the courthouse offices being used by school nutrition and instructional staff; and out of the deteriorating maintenance and operations facilities at Blowing Springs – can significantly improve our ability to function effectively and efficiency for the best interest of our 6800 students and more than 1000 staff members.
ADDRESS PRESSING FINANCIAL NEEDS
This proposal also will make funds available to replace the roof on Grand Oaks Elementary School, which was built in the mid-1980s. The roof has been repaired frequently in recent years and must be replaced soon.
Perhaps most important in the current economy, we can refinance this debt and free up funds to reduce the school system’s budgetary deficit by $1,315,000 without county commission having to increase local property taxes.
Investing in our future
