Buckeye to go forward with certificate of participation loan agreement for facility plan

YORK TWP. — The Buckeye Board of Education approved a resolution to go forward with a $23 million certificate of participation loan agreement to help fund facilities in the district during its meeting Tuesday, but the board did not do so unanimously. Treasurer Mark Donnelly said a certificate of participation loan is a financing tool the district has used in the past for its elementary school building. The district's current facility plan comprises building a new high school and turning the existing high school into a middle school, and the plan is intended to be funded by a certificate of participation loan, capital fund allocations and cash reserves. "(The interest on the loan) is yet to be determined," Donnelly said. "It depends on when we go to market. It could be somewhere between 4.3 percent all the way up to 5 percent. What's going on with the war in Iran right now is making the interest rates go up slightly. I can't really determine, but it's going to be in a certain range." Board member Kim Cecelich said she believes the community does not support the school because bond issues to build a new school were struck down by voters multiple times. As a result, she voted against the certificate of participation loan resolution on Tuesday. "What you're doing is putting our community $23 million further in debt, and I'm quite sure I'm going to be the only person that says no," she said. "As I told you, every single vote on this school, I'm going to say no because I'm here to represent the community. In another year or two, when you come back and say that you need the money, you're going to start cutting teachers and services, and I'm going to be the one that's going to bring it up every single time." Board member Seth Kujat said the current facility plan differs from the proposed bond issues because it is scaled down and taxes are not being increased through a bond. "You may not agree with it," he said. "The professionals at the state and bond counsel who have reviewed how we're getting the sources have all ruled those to be completely legal and very well thought out. We spent the entire summer discussing this, and to think that us building this school is going to cause our district to fall deeper and deeper in debt is not true." Kujat said he thinks the current facility plan is "the most fiscally responsible plan." "This proposal will resolve our largest facility issue," board member Roy Salazar said. "It avoids additional tax to the community. It is the most fiscally responsible approach that we can take to the district in the short term and long term, and it solves our facility issue for decades." Since the board approved the resolution, the underwriter and bond counsel will prepare the necessary documents and go out to market, Donnelly said. "Hopefully by the end of May, we have our funding," he said. "$23 million, we add to our other funds, so we can sign the contracts and build a new building. We cannot sign major construction contracts without having the cash on hand." For more information on facilities at Buckeye Local Schools, visit tinyurl.com/5vv64tyr. Contact reporter Madisyn Woodring at (330) 721-4049 or mwoodring@medina-gazette.com.