Lakeland moves toward high school – and tax hike

Lakeland commissioners took the first step toward researching funding a high school in a split vote Tuesday after hearing from about 20 members of the public — almost all of whom opposed the idea.

The vote authorized city staff to consult with Public Financial Management (PFM) and Bass Berry & Sims on a capital outlay note of $38 million.

Authorizing the actual note would require its own vote, a public hearing and a second reading, but Commissioner Richard Gonzales said Tuesday’s 3-2 vote is likely an indication of things to come.

Gonzales voted with Mayor Mike Cunningham against the resolution. The two have stood in opposition to the idea of funding a high school now, but were outvoted by commissioners Josh Roman, Michele Dial and Wesley Wright.

Cunningham said he was disappointed that his idea of waiting to seek funding of the high school until March 2021 — with an opening date in fall 2022 — wasn’t supported.

“It’s interesting because we talked about compromise early on, right after the election, and I don’t believe that’s in the vocabulary anymore,” Cunningham said. “I believe that the folks that want the school have this desire to have it now.” Public speaks out on ‘sneaky’ measures

Public comments focused largely on fears of a tax increase and the “sneaky” way that some believe the commission has approached funding a high school.

Funding will require a property tax increase, but Roman and City Finance Director Kyle Wright have provided different numbers.

Wright told commissioners in a previous meeting that a 12-year capital outlay note would result in a tax increase of $1.14 for a $40 million project fund.

Roman, in his own presentation, said he believes a 58-cent tax increase is more likely, factoring in sales tax and cuts to the road budget.

If Wright’s numbers are correct, it would nearly double Lakeland’s property tax rate, surpassing all other suburban municipalities.

Roman said he wouldn’t support an increase that high, but also that he doesn’t believe Wright’s numbers are accurate. One reason he wanted Tuesday night’s resolution was in order to find the best numbers to use, he said.

Lakeland residents said they are also concerned at the method of funding chosen by the commissioners: A capital outlay note is more expensive than a general obligation bond, but doesn’t require a public vote.

“Why couldn’t we have another way of funding?” Linda Miller, a Lakeland resident, asked the commission. “Because you don’t have to have our vote for it. That’s sneaky. It is very, very sneaky, and the citizens of this city are tired of the underhanded way that this has been done.” Funding debate sparked

Roman said a capital outlay note is appealing since it could be paid off quickly, and that Lakeland has a history of using such notes.

The idea of a property tax increase at all was also met with strong opposition.

Butch Lulloff was one of several residents who said they would consider moving out of the city if there is a tax increase.

Commissioner Wesley Wright said he won’t approve an increase that is too high.

“Today wasn’t approval of the CON, it was just looking for financial consulting,” Wright said. “We’re trying to see if the numbers actually work . ... I don’t want people who are limited in their income, on their pension to suffer from it. That’s not what I’m trying to do. But the high school does benefit everybody.”

At least two residents spoke to support the majority on the commission.

One resident, Adam Henry, pointed to Lakeland’s charter, where it mentions “a complete educational system within the city.”

“This is clarification for anyone who has any question about where this is coming from,” Henry said. “It’s not dreamed out of thin air.”

Another concern raised is that the firms selected, Public Financial Management PFM and Bass Berry & Sims, also guided the city through previous discussions about funding a joint middle and high school. Then, Lakeland residents were told that a tax increase would cover both projects, Gonzales said.

At the time, Lakeland had the tax increase, but the public voted down the general obligation bond, and only the middle school was built.

Several residents called on the commission to again have a referendum, allowing the public to vote on whether to fund a high school.

“The people spoke,” resident Gary Nicholson told the commission. “They said no. I don’t understand how you could sit up there and say we’re not going to care what you say.”

Katherine Burgess covers county government and the suburbs. She can be reached at katherine.burgess@commercialappeal.com or followed on Twitter @kathsburgess.