Batavia D101 plans $12.6M safety bond sale for school repairs

Batavia Public School District 101 is moving ahead with plans to borrow about $12.6 million to replace aging heating, ventilation and fire alarm systems in six of its schools. At its Oct. 20 meeting, the Board of Education voted to direct administrators to start planning a Health/Life Safety bond sale, with a public hearing set for November and a target sale date in December.

No bonds have been issued yet. Final bond terms and the sale itself still need separate board votes.

How the district got here

After facilities referenda failed in 2022 and 2023, the board scaled back to what it calls the Warm, Safe, Dry plan. Approved in December 2023 at an estimated $48.1 million, the plan focuses on keeping existing schools in working shape: roofs, heating and ventilation, fire alarms, secure entrances, parking lots, doors and windows.

The district says about $26.5 million in building and site work is now done or nearly done, paid for with reserves and transfers from operating funds. That includes renovations at H.C. Storm and Louise White and new secure entrances.

In September, the district estimated the remaining Warm, Safe, Dry and Health/Life Safety work at $30.6 million to $32.9 million, mostly in 2023 prices. Administrators told the board that available revenue and planned transfers are not enough to finish the work, and that leaning harder on reserves would leave less of a cushion for future needs.

What the bonds would pay for

Only work that qualifies under the state's Health/Life Safety rules can be financed with these bonds. An Oct. 13 memo to the board lists the eligible projects, with estimates that include a 10% contingency and 10% for architect and engineering fees:

• Rotolo Middle School: 107 unit ventilators, a new fire alarm system and fire safety repairs, about $5.18 million
• Batavia High School: 54 unit ventilators, a new fire alarm system, door closers and carbon monoxide detection, about $3.66 million
• J.B. Nelson: 49 unit ventilators plus piping and mechanical work, about $2.17 million
• Alice Gustafson: 43 unit ventilators, door closers and fire safety repairs, about $1.50 million
• Grace McWayne and Hoover-Wood: fire safety repairs and electrical panels, about $117,000 combined

Unit ventilator and fire alarm replacements make up about 93% of the work-item costs. The district calls these planning numbers, not bids.

The district has explained why some of this equipment is due. At J.B. Nelson, original piping has been in service for more than 70 years, and classroom heating and ventilation units have run for more than 35. In the Batavia High School C-Wing, classroom units are about 33 years old and have been failing more often. The J.B. Nelson and high school projects are tentatively planned for fiscal year 2028.

What it means for taxes

The bonds would be repaid with a new bond and interest property tax levy. The district's financial advisor, PMA, showed the board three repayment options. Based on rates as of Oct. 7 plus a quarter point, estimated total repayment ranges from about $15.5 million for a six-year payoff ending in 2033 to about $16.7 million and $16.9 million for two options that run through 2037.

The annual cost for a household depends on the amount borrowed, interest rates, the repayment schedule and property values. The district has said it will share more on the tax impact as the plan moves forward.

What happens next

The memo lays out this timeline:

• Nov. 17: Public hearing under the Bond Issue Notification Act, with public comment
• Dec. 1: Board considers a resolution authorizing the bond sale
• Dec. 7: Target bond sale
• Dec. 28: Target closing

Work beyond what the bonds cover, such as roofs, windows and doors, still needs other funding, and construction contracts will need their own board votes.

Board agendas and materials are posted on the district's meeting portal, and meetings stream on the district's YouTube channel. The district office is at 335 W. Wilson St., and the main number is 630-937-8800.