Wake County school board seeks $530.7 million bond referendum

Workers use lifts to work on various areas at Oakview Elementary School in Holly Springs in this 2015 file photo. Wake County voters coud be asked to decide on a $530.7 million school construction bond referendum on the Nov. 8 ballot.

Workers use lifts to work on various areas at Oakview Elementary School in Holly Springs in this 2015 file photo. Wake County voters coud be asked to decide on a $530.7 million school construction bond referendum on the Nov. 8 ballot.

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Wake County voters will likely be asked this fall to approve borrowing nearly $900 million to pay for school construction projects that would come with a modest tax increase.

The school board passed a resolution Tuesday asking the Wake County Board of Commissioners to put a $530.7 million school construction bond referendum on the Nov. 8 ballot. Wake Technical Community College is also expected to ask commissioners to put a $353.2 million construction bond referendum on the fall ballot.

Commissioners are expected to approve both requests since they’re built into the county’s model to pay for capital projects. County finance staff say that the $883.9 million in bonds would cost taxpayers a 1-cent increase on their property tax rate.

The owner of a $337,000 home — which was the average assessed Wake County home value in 2021 — would pay $33.70 more per year in property taxes. The owner of a $429,750 home — the average home sale price in Wake in 2021 — would pay $42.98 more per year in property taxes.

School board members emphasized Tuesday that using bonds will be the cheapest way to pay for construction needs. Interest rates are lower on borrowing for general-obligation bonds approved by voters.

“This bond is the most fiscally responsible way to begin to address these very critical needs throughout our county,” said board member Jim Martin, who chairs the facilities committee.

Oakview 3
Workers use lifts to work on various areas at Oakview Elementary School in Holly Springs in this 2015 file photo. Wake County voters coud be asked to decide on a $530.7 million school construction bond referendum on the Nov. 8 ballot. Chuck Liddy [email protected]

History of supporting school bonds

The bond referendum for the school district would provide most of the $664.6 million needed to pay for projects during the 2023-24 and 2024-25 fiscal years.

Historically, Wake County voters have been supportive of borrowing money for school projects. The only school construction bond rejected by Wake voters was in 1999. Since then, voters have approved more than $3.2 billion in school bonds.

The last school bond referendum of $548 million was overwhelmingly approved by voters in 2018.

“What we’re doing is asking the taxpayers to help us be fiscally responsible and approve this bond so that we can budget responsibly,” said board chairwoman Lindsay Mahaffey.

Balancing renovations and new schools

The bond referendum is part of a rolling, seven-year school construction program totaling $2.6 billion. The school board approved Tuesday the projects that will be included in the next seven years.

The plan includes funding for eight major school renovations, four new schools and other projects. An earlier version of the plan had seven new schools and five renovations before board members asked for changes.

“We heard that major renovations were important to the board,” said Douglas Congdon, program executive for facilities, design and construction.

The plan calls for major renovations at North Garner Middle; Lockhart Elementary in Knightdale; Briarcliff Elementary in Cary; Brentwood Elementary, Athens Drive High, Washington Elementary and Ligon Middle in Raleigh; and Zebulon Middle.

The plan’s four new schools are a small high school in West Cary or Morrisville, an elementary school in Wendell or Zebulon, an elementary school on Poole Road in eastern Raleigh and an elementary school in northeastern Raleigh. The plan now is to permanently relocate Wendell Elementary’s students and staff to the new eastern Wake elementary school.

Wake has some flexibility to not build as many new schools because growth has sharply slowed down. The district’s enrollment is below where it was two years ago.

School leaders said the project list represents a balance of renovations and new schools.

“I appreciate all of the work that you have done not only in listening to my colleagues and the needs for their schools but also understanding that this does not stop the needs of growing communities where new schools are,” Mahaffey told facilities staff.

This story was originally published April 19, 2022 8:34 PM.

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T. Keung Hui has covered K-12 education for the News & Observer since 1999, helping parents, students, school employees and the community understand the vital role education plays in North Carolina. His primary focus is Wake County, but he also covers statewide education issues.