School Board OKs Bonds for School Renovations; Finance Plan Will Save Money, Support Projects Throughout City

The Des Moines School Board this evening approved the sale of approximately $67 million in Sales Tax Revenue Bonds in order to proceed with the renovation of more than a dozen schools throughout the city. The decision will save money by getting ahead of the cost of inflation, accelerate work to several schools in the community, and support jobs in the construction trades. Plans include a new building for Edmunds Elementary School.
 
“The bonds will have a positive impact for our students and teachers, for our school facilities in neighborhoods throughout Des Moines, and for the workers who are preparing our buildings for the future,” said Connie Boesen, chair of the Des Moines School Board. “This enables us to better meet our promise to improve our school facilities, and do it in a way that makes the most financial sense.”
 
The one cent sales tax is collected state wide and distributed annually to school districts each spring based on their annual enrollment. This will be done through June 30, 2029.  For the fiscal year that just ended on June 30, Des Moines Public Schools received sales tax revenue of $24,120,171. Original estimates were that the Des Moines district would receive $22.5 million each year in sales tax revenue.
 
“In short, this allows us to complete more of our school renovation sooner, so that our students and teachers can benefit from being able to learn and work in improved school facilities,” added Bill Good, chief operating officer for Des Moines Public Schools.
 
Advantages of issuing the bonds include:

  • Minimize inflationary increases on a portion of the construction program.
  • Maximize the use of construction dollars in the first 10 years of the program.
  • Add flexibility to the construction schedule.
  • Allow the District to develop the most optimal construction plan.
  • Lock up a portion of the revenue stream for debt service and/or projects.
  • Allow the District to move up projects to benefit students earlier.
  • Lock in projects at an estimated borrowing cost of approximately 4% which may be lower than the average inflationary factor over the next 17 years.
  • Continue the plan created by the Superintendents Facilities Advisory Committee.
  • Continue to provide operational efficiencies which will have a direct impact on the general fund in the form of reduced energy costs. 

The school district will complete project planning this Fall, and conduct the sale of bonds starting in January and closing in March.
 
Projects planned to be completed using these bond proceeds include: 

  • Central Campus – Complete the balance of renovations of 1st and 2nd floors, exterior doors, asbestos abatement, data and communications upgrade, security and technology upgrades.
  • Cowles Elementary School – Addition or renovation to eliminate the temporary building.
  • Brody Middle School – Addition to eliminate temporary buildings.
  • Edmunds Elementary School – New school building.
  • Findley Elementary School – Window and door replacement, mechanical/electrical upgrade, asbestos abatement, data and communications upgrade, addition to eliminate temporary building and open classrooms, security and technology upgrades.
  • Hiatt Middle School – Exterior door replacement, mechanical/electrical upgrade, asbestos abatement, data and communications upgrade, remodel to eliminate temporary buildings, student drop-off, security and technology upgrades.
  • Hoover High School – Exterior window and door replacement, electrical improvements.
  • Hoyt Middle School – Window and door replacement, mechanical/electrical upgrade, asbestos abatement, data and communications upgrade, addition to eliminate open classrooms, security and technology upgrades.
  • Jefferson Elementary School – Window and door replacement, mechanical/electrical upgrade, asbestos abatement, data and communications upgrade, addition to eliminate open classrooms, , security and technology upgrades.
  • Lovejoy Elementary School – Window and door replacement, mechanical/electrical upgrade, asbestos abatement, data and communications upgrade, addition to eliminate temporary buildings and open classrooms, student drop-off, security and technology upgrades.
  • Madison Elementary School – Student drop-off
  • Meredith Middle School – Completion of exterior window and door replacement, mechanical/electrical upgrade, asbestos abatement, data and communications upgrade, security and technology upgrades.
  • Park Elementary School – Renovate 1970 wing.
  • Pleasant Hill Elementary School – Window and door replacement, mechanical/electrical upgrade, asbestos abatement, data and communications upgrade, addition to eliminate temporary buildings and open classrooms, security and technology upgrades.
  • Prospect – Exterior window replacement, mechanical/electrical upgrade, asbestos abatement, data and communications upgrade.
  • Studebaker Elementary School – Window and door replacement, mechanical/electrical upgrade, asbestos abatement, data and communications upgrade, addition to eliminate temporary buildings and open classrooms, security and technology upgrades.