Unit 40 Board Votes to Place Sales Tax Question on April Ballot

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Published on January 9 2017 9:56 pm
Last Updated on January 9 2017 10:15 pm
Written by Greg Sapp

The Effingham Unit 40 Board of Education Monday voted to place the question of a countywide 1% sales tax on the April 4 election ballot.

The tax, if approved by the voters, would generate revenue to help pay for new construction or renovation work on district buildings. The projection is that Unit 40 would receive $2.8 million/year from the sales tax.

The sales tax would have the same exemptions as other sales taxes; groceries and prescription drugs would not be taxed. 

Once the decision was made to seek passage of the tax on a 7-0 vote, the Board turned its attention to what would be done with the tax revenue. Three options were reviewed.

One option is to renovate the junior high building at a cost of about $14 million and conversion of Central to a Grades Pre-K through fifth grade building for about $18 million.

Another option is to build a Grades Pre-K through 5th grade building to accommodate 1,300 students at a cost of $46.7 million and convert Central to the junior high building for about $6.5 million.

The third option is to build a junior high building for just under $31 million, and convert Central to a Pre-K through 5th grade building for about $19 million.

Unit 40 Superintendent Mark Doan said Options 1 and 3 seem the ones most attractive due to the cost of the new Grades Pre-K to 5 building. The Board made no decision as to what project they would pursue. One consideration is Doan's desire to trim the number of school buildings to three to cut operational costs.

Doan said the District would likely issue bonds to finance whatever project is pursued. He said a 20-year bond note could raise about $29 million, while a 30-year bond would generate about $36 million, with those figures helping to guide whatever decision is made.

A reminder that the District could bond up to 80% of the project cost, not the entire amount, in case sales tax revenue drops.

If the Board decides to pursue a junior high building renovation, the plan would likely include a new cafeteria moving it out of the basement.

The Board heard from architects who have worked on designs for whatever is pursued. One offered that the district could likely get "another 40 or 50 years out of the junior high building."

The Altamont, Beecher City and Dieterich school boards also voted Monday night to put the sales tax question on the April ballot. The Dieterich board vote was 7-0, the Altamont board vote was 5-0, and the Beecher City board vote was 5-1. The Teutopolis board will consider the question at its meeting Thursday night.