What is the Condition of District Schools? 

Dillingham High School was built in the 50’s, with additions in the 70’s, and the elementary school in 1980. Both buildings have failing roofs, doors and windows. Wiring does not meet code current technology use. Fixtures need to be upgraded and the buildings need to meet current fire and safety codes. DCSD facilities are aging, deteriorating, and becoming unsafe, unhealthy, and unsound. Major renovation of the buildings is needed now. Construction costs increase annually. Postponing this is likely to cost more in the future.

How will the money from the bonds be used?

If approved, the bond funds will be used to finance badly needed major renovation to ensure safe facilities conducive to learning. The money will be used to refurbish and equip the Middle/High School and Elementary School, including, but not limited to, upgrading the buildings to current codes; remodeling classrooms and kitchen; making health and safety improvements; upgrading heating, ventilation, electrical, and mechanical systems; replacing both roofs, exterior doors, and windows; and renewing playground facilities.

What are the basic bond facts? 

School bonds are for school buildings and capital improvements; they are not used to fund operating expenses such as teacher salaries, books, electricity, heating, and athletics. A bond is a loan to the City for DCSD to provide capital to build and renovate schools. Taxpayers promise to repay this loan when they vote for a school bond. This is called bonded indebtedness. State debt reimbursement means the State makes part of the principal and interest payments on these loans, reducing the cost of the school bonds to Dillingham taxpayers. The Legislature must vote to authorize these payments each year, which they have done for over 20 years. This means the state will likely reimburse the city 70 percent of the bonding costs.

If Approved by Voters, how does the State debt reimbursement program work?

If voters pass the GO bond, the state will allow for debt reimbursement, subject to annual appropriation by the legislature. The Legislature has approved the reimbursement payments for the last twenty years. In short, the 70/30 GO bond reimbursement provision means that the city will make the first payment in full and be reimbursed 70% by the state. This continues each year, assuming continued legislative approval.

What is the bond amount?

The proposition provides $15,101,248 for the purpose of financing the cost of design, renovation, and major maintenance of DSCD educational facilities. If the GO bond passes, projects authorized by voters before November 1, 2008, are eligible for 70 percent reimbursement from the State of Alaska. The total bond cost to the City of Dillingham’s anticipated 30% debt reimbursement share over 20 years is $7,326,034, (assuming 5.25% interest). The State would pay the remaining $10,358,423 portion of the

project.

What will this GO bond cost Dillingham residents?

The City and School District expect to finance the cost of the bond with joint appropriations. This means neither property taxes nor sales taxes will be increased to pay our 30% share of the debt reimbursement to finance the schools’ renovation project.

The School Bonds proposed in December 2004 failed to get voter approval. What has changed since then?

A comprehensive Condition Survey was completed in December 2006 by GDM, an Anchorage architect firm. This document is available for inspection and comment. Copies are at the city library and superintendent’s office. This details the precise facility needs and projected costs.

The City and District are enjoying good, solid, cooperative relations. We recognize the importance of communication and the need to work together for the betterment of our children’s education.

Unlike the last bond initiative, the ballot will not state that the funds are: “for school and related capital improvement in the city.”

Where can I get more information on the proposition? 

Contact the Superintendent, Dillingham City School District, at 842-5223.