PIEDMONT -- The school board is mulling over options for different types of bonds to finance an overhaul of Alan Harvey Theater.
The bond election, for approximately $14 million, would probably be held in June. The aging theater is sorely in need of upgrades and improvements in seating, lighting, accessibility, fixtures and installation of a classroom for drama classes.
The complete report by bond consultant Ruth Alahydoian can be found at www.piedmont.k12.ca.us. The public is encouraged to provide input on the bond options by contacting school board members or attending another meeting in January on the topic.
Two types of bond elections are available. A 55 percent voter approval election must be held in June or November with a tax rate not to exceed $60 per $100,000 of assessed value. It would cover all aspects of the remodel including furnishings and equipment.
A two-thirds voter approval could be held any Tuesday except within 45 days of a statewide election. There is no limitation on tax rate; no furniture or equipment could be included in the financing.
The Piedmont school district currently has a debt capacity of $11.1 million. As of August, its debt capacity will grow to $14.2 million to $15.9 million based upon real estate growth factors. Piedmont has $3.4 billion in assessed property values, with $74.5 million in outstanding bonds. There are 3,900 land parcels in Piedmont.
Alahydoian cited four options for consideration of a $15 million bond. Repayment would range from 13 to 25 years. Bonds would mature in 2027 to 2039. Tax rates per $100,000 in assessed value would range from $18 to $43.
At the Dec. 11 school board meeting, resident Jon Elliott told the board he does not favor capital appreciation bonds (CABs), one of the cited options.
"You pay twice as much interest on a CAB. CABs dig a deep hole in the future. (Let's) not lock into high interest payments in the future," Elliott said.
The board will hold another public hearing for further discussion at its Jan. 8 meeting. The board also moved on what articles to include or "sunshine" in its negotiations with the Association of Piedmont Teachers. They will work toward securing a three-year contract starting in July, but each year various articles are opened for discussion.
Articles include salary and benefits, hours and professional responsibility, retirement/disability benefits. Public feedback is encouraged.