Some county commissioners are uneasy about financing the reconstruction of Eastern Guilford High School without knowing how much the state will reimburse Guilford County Schools in insurance funds.
Those commissioners have qualms about the Board of Education using tax dollars to pay for additional, yet unnamed, school construction projects.
The school board voted last week to request $53 million from commissioners on April 19 to rebuild Eastern, which was destroyed by fire Nov. 1. A certificate of participation, a loan that does not require voter approval, could cover the cost of the school until the district reaches an insurance settlement with the state Department of Public Instruction.
Eileen Townsend, chief of insurance with the state Department of Public Instruction, said she expected to reach a settlement on the building within four months -- the time it could take the county to secure a loan. The school system plans to sign construction contracts on Eastern in June in hopes of having it built by January 2009.
Commissioner Carolyn Coleman wants to know from the school board how it will spend the insurance settlement. Last week, Sharon Ozment, chief finance officer for the district, told the school board that funds left over from the certificate of participation or insurance settlement could be spent on other school maintenance or construction projects because of the broad wording of the school board's request.
"When they receive the insurance money, will that be used to pay off the certificate of participation or will that be used for something else?" Coleman asked. "If they don't give us the money back, we could face an increase in taxes."
Coleman worried an increase resulting from a financed Eastern, proposed county jail and possible school bond referendum in November could overburden taxpayers, she said.
Yow, who supports the use of a certificate of participation, and Commissioner Linda Shaw said they wanted leftover insurance money to pay back county debt if the loan is approved. Commissioners Kirk Perkins and John Parks said they weren't sure how additional money should be spent.
Alan Duncan, school board chairman, said deciding on the use of remaining funds would be premature because the district doesn't know the final price of the school or insurance settlement amount.
Obtaining a certificate of participation could take four to five months, said Brenda Fox, county finance director. County commissioners would have to apply for the financing through the state treasurer's office and then hold a public hearing, Fox said.
Paul Gibson, commissioners chairman, said he believes the two boards should move quickly to secure funding for the school and believes they can reasonably address leftover money.
"It may be something that the school board can bring to our next meeting that we would be able to agree on," Gibson said. "We'll figure out what to do with that money."
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