In October, our board of education passed a funding mechanism for phase two renovations at Patrick Henry High School. This mechanism is Certificates of Participation (COPS). As we shared at that time, the district leveraged 75% of the pipeline payments (accounting for depreciation) over the next 30 years to fund phase two renovations through the COPS program. To be conservative the district used $2.4 million dollars in the design of the COPS mechanism for phase 2 renovations. This option allows the district to complete the overdue renovations without asking our taxpayers for additional money.
Patrick Henry Local Schools has been specific on its intention for the pipeline money. Our district has a 50-year-old high school. We have electrical and plumbing infrastructures that need upgraded and the lack of air conditioning needs to be addressed. Since August 2018, our district has been intentional in explaining our plans for the pipeline payments we receive — to renovate our aging 50-year-old building with that money and being able to do so without costing our taxpayers any more in taxes.
At the November board of education meeting, the Patrick Henry Local Schools approved a letter of commitment with Prodigy Building Solutions for phase two renovations at Patrick Henry High School. Additionally, Prodigy Building Solutions presented to the board regarding the renovations. Below are the items that are included in the renovation. Though this list is not all inclusive, most items/areas being renovated are included in the list.
•HVAC including replacing heating and adding air conditioning.
•LED lights including dimmers and occupancy controls.
•Replace underground plumbing, including sewage, storm drain and water supplies and gas line to mechanical room.
•New flooring in classrooms and hallways.
•Renovate restrooms and girl’s locker rooms.
•Replace interior doors, not including door frames.
•Replace the north vestibule and east exterior doors.
•Install new domestic hot water heater.
•Replace the ceiling, including new grid, excluding the addition to the cafeteria.
•Roof, including a 30-year warranty.
•Classroom furniture and casework.
•Hallway casework, trophy cases and bulkheads in entry.
•New vegetable serving line for the kitchen, garbage disposal, new shelving, new cabinets and new cooktop.
•LED theater lighting and new controller.
•Paint the stage.
•Replace theater curtain.
•Gym floor — new.
•Basketball hoops — new.
•Gym bleachers- new.
•Gym sound system.
•Add egress lighting.
•Replace exhaust fans.
•Football stadium lighting and sound system.
At Prodigy Building Solutions’ presentation, they indicated that final engineering needs to occur and a few more decisions need to be made to have a finalized budget number. They expect phase two to cost between $13.5 million to $16.5 million.
Below is the tentative timeline for phase two renovations:
•Christmas 2019: Remove floors in classrooms. Classrooms will have a concrete floor. This is being done to help speed the process up in the summer. More information will be released about this at a future date.
•March 2020: Begin construction on roofing, football stadium, possible work on sound/light in gym.
•April 2020: Begin construction on restrooms
•June 2020: Begin remaining construction
•Beginning of school year — to be determined.
•December 2020: Finish hallway flooring if not finished in the summer.
The Rover pipeline has appealed the value that has been assigned to it by the Ohio Department of Taxation. This appeal was expected. As we have stated above, we based on funding on 75% of double (because two lines are now operational in the ground rather than one) what we received in tax year 2018. This funding model was developed to be conservative in how we leveraged the pipeline payments knowing appeals and depreciation would likely occur.
It is important the district is cognizant of how the pipeline revenue will impact the funding from the Ohio Department of Education. We have been told that our funding will be reduced because of this money coming into our district. Secondly, our district will experience a re-evaluation in our tax values in 2020. We have been told by the auditor’s office that we should expect a 25% decrease in our agricultural values due to an adjustment in the CAUV formula. Additionally, the district is well aware of the possibility of legislatures creating statute that will take some of the pipeline payment away from districts like ours. Finally, we are aware that possible appeals can happen with the values that have been shared by the auditor’s office. All of these points are important to remember knowing that these pipeline payments will be a benefit to PH, the district also has to account for the loses or change in funding that is currently happening or will happen in the near future.