After an anxious discussion about the impact of the economy on Chartiers-Houston School District, the board voted 5-3 on Monday to issue $10 million worth of bonds for the high school renovation project.
Bond counsel Bob Aumer brought the board another bid for bonds Monday. The board had been waiting to issue bonds until it could get a good rate. The interest rate will start at 3 percent and run up to 4.4 percent over the 20 years of the loan.
By waiting until now, the school board is able to save taxpayers more than $600,000 in interest, Aumer said. Still, spending this much money was a concern for some members of the board and one audience member.
"Consumer confidence is at an all-time low," said board member Lisa Mowry, who voted against borrowing the money now. "What do taxpayers want?"
Resident Sue Shuba questioned why the board was spending this much money when the economy is in such turmoil. She said the board shouldn't be spending millions on an athletic complex.
"This is a bad time," she said. "So many of us can't afford the millage. This is a frivolous project for a few people."
The $10 million will mean a 7.26-mill increase, and 3 of those mills were approved last year.
Board member Harlan Shober Jr., who voted to borrow the money, said more than $8 million will be spent to renovate the junior and senior high school.
The rest of the money will be used to update the existing gym or an additional amount will be borrowed to build an athletic facility. That amount will depend on interest rates and what bids for the athletic complex will be.
Board President Richard Hall said now is a good time to build because prices for construction goods are going down. For example, he said, copper is half the price it was a year ago. The cost of steel also has dropped.
"I think one thing we have to do is invest back into the infrastructure," he said.
If the board plans to complete the project, Aumer suggested issuing the bonds now because he thinks the interest rates will go up. If the economy gets worse, the board still can stop the project, Aumer said. If the bids come in high, the board can reject them, he said. The board also can buy back the bonds. Plans call for the project to be bid in November and for the board to vote on the bids in January.
Board member Fred Rockage said he is in favor of the project but he's not comfortable with the interest rate.
"I think we can get a better interest rate," he said.
The board also rescinded its November vote to borrow the $10 million. The board issued the bonds then, but Aumer told them in December that interest rates jumped. He suggested waiting until the beginning of the year to see if they fell. The board agreed to wait but didn't vote on rescinding the November decision until Monday.
Mowry, Fred Rockage and Richard Caumo voted against borrowing the money.
Shober, Hall, Kathleen Belfiore, Frank Vulcano Jr. and Rodney Whitfield voted for borrowing the money. Anthony Marra was absent.