Federal funds, sales tax may foot bill for new high school
By By Leada Gore, Hartselle Enquirer
Federal stimulus funds pledged to school construction could pave the way for a new high school in Hartselle, but it will probably take a sales tax increase to complete the project.
Hartselle’s School Board is applying for $40 million through the federal government’s Qualified School Construction Bond program. The program allows local governments to issue 14 or 15-year interest free bonds to fund construction or renovation of schools.
Hartselle school officials have been pushing for the construction of a new high school for more than a decade. A previous attempt to increase property taxes to fund it was defeated last year.
Now, several city leaders said the time is right to pass a sales tax increase to accompany the interest-free money available from the federal program.
Tankersley said he’s unsure how money would be available through the stimulus funds but it could take as much as a one and a half-cent sales tax increase to cover the remainder. Still, the opportunity to use interest-free money would make the sale tax increase worth it, he said.
School officials are pledging an additional $300,000 a year towards the cost. Normally, bonds are due payable in 20 or 30 years. The federal program requires a shortened 14 to 15 year payback.
Superintendent Dr. Mike Reed said the federal funds should be enough to cover three-fourth of the cost of a proposed $40 million school facility.
The council needs only a simple majority -three votes - to pass a sales tax increase. It could be set to expire when the bonds are repaid, Tankersley said.
Hartselle residents currently pay 8 percent sales tax, with 3 percent going to the city, 1 percent to the county and the remainder to the state. Decatur currently has 9 percent sales tax.
The application for the money has been submitted to Gov. Bob Riley’s office. Riley has the final say on which systems will receive funding.
The new high school is expected to cost some $45 million. In addition to providing modernized facilities, including an auditorium, it would free up the existing high school to serve as a junior high facility. Lower grade classes would be moved to the junior high school, allowing for more space at each elementary school.
Staff Writer Clif Knight contributed to this report.
