ADVISORY PANEL backs ballot measure to raise $205 million for school buildings.

Advisory Board endorses public vote to raise $205M

The Little Rock School District’s Community Advisory Board voted Thursday to support putting a provision on the Nov. 3 School Board election ballot a proposal to raise about $205 million for school construction and repairs.

The advisory board voted 4-0 to recommend the plan for restructuring the district’s building debts and extending the debt payments by 18 years to 2051 to Arkansas Education Secretary Johnny Key.

Key acts in place of a school board in the state-controlled Little Rock district and has ultimate authority over putting the proposal up for a public vote.

Superintendent Mike Poore told the advisory board that should the proposal make it to the ballot and be approved, the district would be obligated by a settlement in a recent federal lawsuit to use a portion of the resulting funds to rebuild the now-vacant McClellan High as a replacement for Cloverdale Middle School.

The proposed tax plan hearkens back to May 2017 when district leaders asked voters for a similar extension of debt-service mills, but the measure was defeated at the polls after a spirited campaign. That campaign largely revolved around the fact that the district had been under state control and without an elected school board since 2015.

The Arkansas Board of Education has since voted to return the district of more than 20,000 students to local governance — with some restrictions — following the upcoming November election, at which nine school board members will be elected.

Following the May 2017 defeat of the tax proposal, the district issued second-lien bonds — which don’t require voter approval

— to raise a lesser amount of money, about $90 million.

Kelsey Bailey, the district’s chief financial officer, said Thursday the second-lien bond money has been spent for projects that included a part of the the new Southwest High School, the remodeling of Scott Field, roof replacements, and the addition of air conditioning to several school gyms and kitchens.

“I support this,” said Jeff Wood, chairman of the Community Advisory Board. “I support the voters getting to decide and I support a fresh Little Rock School Board getting to make solid decisions on where we are going to invest in improving our infrastructure.”

The tax plan calls for refinancing the debt on bonds issued by the district in 2015 and extending the levy of the district’s 12.4 debt-service tax mills from 2033 when they are now due to expire to 2051.

The proposal, if approved, would not increase the annual taxes paid by a property owner in the Little Rock district, but the taxpayer would pay the annual amount for additional years.

Poore told the advisory board that the market for issuing bonds is expected to be favorable for the district, giving it more money to spend on projects. He thanked Stephens Inc. and Jack Truemper of that organization for their assistance on the proposal.

He also praised his staff for the construction work that has been done to this point, including the opening of Pinnacle View Middle School and the installation of new security systems.

“We’ve stretched that dime like nobody’s business to do what is best for kids,” Poore said in thanking Bailey and Kevin Yarberry, the district’s director of plant services.

The district has an overall millage rate of 46.4 mills, including mills for operations, debt service, maintenance and technology.

A mill is one-tenth of a cent. Each mill produces $1 in taxes for every $1,000 of assessed valuation. Counties assess real property at 20% of its appraised value, and that value is multiplied by the millage rate to determine taxes.