The Newberg School Board is considering placing a general obligation bond measure on the May 17, 2011 ballot to support classrooms, repair buildings and make safety and energy efficiency improvements. Bond funds can only be used for construction and purchase of textbooks, technology and classroom equipment. Bond funds cannot pay for teacher salaries or operational costs.

Last October, a report detailing school facility needs over the next decade highlighted the need to protect the community’s investment in schools and accommodate. The Facilities Task Force report recommended major maintenance such as roof, boiler and flooring replacements, electrical upgrades and modifications for greater energy efficiencies. The report also recommended a new middle school to accommodate growth. However, focus groups with stakeholder groups did not view a new school as a high priority at this time, and instead identified the need to support the classroom and repair school buildings as most important.

A recent community telephone survey indicated that a majority of residents contacted favor a $27 million bond to purchase textbooks and classroom equipment and make major repairs, safety and energy efficiencies improvements. According to the survey, community support increased with the knowledge that the proposed bond would

• protect the community’s investment in schools buildings by replacing worn out roofs and low efficiency heating and ventilation systems
• make energy improvements that would save the district thousands of dollars in annual operating costs
•  not increase property taxes due to a bond retiring
•  save an estimated $3-4 million in interest because the school district has been approved to finance $15 million of a bond at 0% interest through a federal program

School board members are currently seeking additional information on financing structure. The rate for a $27 million general obligation bond paid over 20 years is 66¢ per thousand dollars of assessed property value. The same amount financed over a shorter period of time would average rates at a higher cost when combined with existing debt, but would save approximately $11 million in interest – and still lower the current tax rate.

The Newberg School District debt rate is dropping to $1.88 per thousand dollars of assessed value from $3.67 in 2012.