It’s been nearly two years since the project to build Miller South School for the Visual and Performing Arts and Pfeiffer Elementary was approved by the Akron Board of Education — and eight months since the district received funds to cover construction costs.
Now, on the heels of news that the project is projected to overrun the budget by $13 million, the board’s finance committee on Monday evening heard three options on how to proceed.
No decision was made Monday night.
The $13 million cost overrun is a bit misleading due to returns on investments made by the district with small portions of the budget that total $3 million. That still leaves a budget gap of around $10 million.
How is the Akron schools project funded?
The Miller South and Pfeiffer project is funded in large part by a certificate of participation, a financial tool used to fund public projects. The district took out what is essentially a $40 million loan with strings attached.
The strings? A hard timeline of three years from the issuance of the money, which APS Treasurer Steve Thompson said the district received eight months ago, to when the funds run out or when students step foot into the newly constructed school.
“I’ve never been down that road before,” Thompson said about potentially missing the deadline. “So that’s a legal question that I, off the top of my head, couldn’t answer.”
What are the school board’s options?
The first option Thompson recommended is to continue the project as planned, which leaves the $10 million gap that will have to be most likely covered by general fund money. Another funding option is to use the full amount available in the local finance initiative fund, around $18 million, which would still leave a funding gap of around $2 million the district would have to cover.
It also remains to be seen whether the city wants the district to use the full amount in the account. Thompson said the assumption that the district would be allowed to use half the money was baked into the project’s initial budget.
“I’m confident that we’re going to get at least half,” Thompson said about the money.
The second and third options would both close Pfieffer Elementary, a blow to the Kenmore community.
The second option given by Thompson would be to construct a new Miller South on the site of the old Kenmore High School and redistrict Pfeiffer students to existing schools. This option would save around $15 million.
Thompson said the architectural firm, Prime AE, initially provided designs for a new Miller South but were not presented publicly prior to Monday’s meeting. The board approved a project that would be a school to house both student populations.
Under the second option, Pfeiffer students would be placed at Sam Salem, Rimer and McEbright Community Learning Centers. Thompson said of the four schools, Pfieffer has the lowest student population — around 190 students.
The third option would be to close Pfeiffer and redistrict its students while the Miller South population is absorbed into Litchfield CLC. If the board selects this plan, it would likely build an addition onto Litchfield, restarting the design and architectural process by Prime AE.
