The Oak Creek-Franklin School District is asking voters to approve a $34.3 million tax referendum to build two new pools.
The question is on the Nov. 5 ballot, along with the presidential election, a U.S. Senate election, Congressional races, and elections for Wisconsin Assembly and Senate.
What is the question?
The referendum asks voters to approve $34.3 million in bonds to fund facility improvements.
The question on the ballot says:
Shall the Oak Creek-Franklin Joint School District, Milwaukee County, Wisconsin be authorized to issue pursuant to Chapter 67 of the Wisconsin Statutes, general obligation bonds in an amount not to exceed $34,300,000 for the public purpose of paying the cost of a school building and facility improvement project consisting of: construction of an addition to the 9th Grade Center for a community pool, a competition pool and related parking lot and site improvements; renovations to the old pool, including to convert it to a weight room; safety and security improvements, including to construct an enclosed walkway between the 9th Grade Center and the High School; district-wide capital maintenance and building infrastructure improvements; and acquisition of furnishings, fixtures and equipment?
Why does the district say the referendum is needed?
District leaders say the $34.3 million capital referendum would pay for replacement of the district's 62-year old pool with a community pool and a competition pool to provide aquatic programming and opportunities.
On its referendum website, the district outlines why a pool is needed:
"The OCF pool was built in 1962 with an expected lifespan of 55 years. Although it has been well-maintained over the last 62 years, significant repairs and updates are needed to continue serving our community and students – in particular, improvements to pool safety, security, and accessibility.
"Over the past decade, there has been an increase in emergency repairs for systems like pool lighting and piping. This trend is expected to continue.
"Additionally, community feedback indicated there was significant interest in expanding opportunities and access for all demographics to create a true community pool."
The project would include an addition to the 9th Grade Center for a community pool, a competition pool and related parking lot and site improvements, renovations to the old pool, including converting it to a weight room, safety and security improvements, including construction of an enclosed walkway between the 9th Grade Center and the high school.
What will the tax impact be?
The district says there would be no tax increase from the $34.3 million debt referendum.
According to the Wisconsin Policy Forum, debt referendums "give the district the authority to exceed its state-imposed revenue limit for the purpose of making debt payments." The impact on taxes depends on the amount of money and the period of time over which the debt repayment happens.
In Oak Creek-Franklin's case, the district says: "Our debt strategy would be adjusted to accommodate the cost of the new pools, and the existing repayment period would be extended."
The referendum website goes into detail about how the district will restructure its debt so the payments for the pool project would not increase the tax levy.
It says Oak Creek-Franklin has been defeasing (or prepaying) some of its debt for three years. If the pool referendum is approved, it would pause its defeasance payments and instead make payments toward the pool debt. "After about 5.5 years, we will continue our defeasance strategy and be debt-free by 2036," the district says.
