Anamosa school board considers free interest option

Not quite two weeks after voters defeated a $15.1 million bond issue to build a new middle school, the school board last night heard an alternate proposal for funding the project.

Rather than pay for the new school and interest on the bonds through increased property taxes, the district would repay the debt with proceeds from the local option sales tax, and the district would save about $5 million in interest costs if it qualifies for inclusion in a federal stimulus program, according to Larry Burger of Speer Financial in Waterloo, who explained the program last night.

A $12.4 million middle school could be built with no property tax increase, said school board president Lowell Tiedt.

Although the district has several building improvement needs, Tiedt said the board's priority is a new middle school.

Superintendent Dale Monroe, who announced his resignation effective May 28 at last night's meeting, said the board could proceed with the project without any approval by district voters.

Burger said the state has $64 million available under a program called Qualified School Construction Bonds. Lenders get tax credits in lieu of interest, so school districts get interest-free money for school construction projects, he said.

If the district decides to apply, the big hurdle will be getting its application accepted, according to Monroe.