116 3rd St SE
Cedar Rapids, Iowa 52401
Waterloo seeks to build new school without referendum
Board OK’s $165M plan using sales tax to back revenue bonds
By Maria Kuiper - Waterloo-Cedar Falls Courier
Jul. 30, 2024 5:14 pm
WATERLOO — Despite objections from some residents and two of its own members, the Waterloo school board agreed this week to move all high school students to a new $165 million building beginning in 2028-29 academic year.
The board voted 5-2 Monday night to create a single new facility for students from East and West high schools. Unless voters present a petition demanding a referendum, the decision allows the district to issue revenue bonds for the project. Board members Jonathan Cox and Astor Williams voted against it.
The bonds would go toward converting Central Middle School into a new high school building that would house 10th through 12th graders who previously attended East and West high schools. Eighth and ninth graders would attend at the East and West high school buildings instead.
Nearly 2,000 students would attend the new school. Expo High School also will be on site, moving to the conjoining Waterloo Career Center this fall.
The new school is expected to be open for the 2028-29 school year.
Rather than raise property taxes, the district will use an existing statewide sales tax known as the Secure an Advanced Vision Education Fund, or SAVE. The dollars come from a statewide 1 percent sales tax divided between school districts on a per-pupil basis. Jeff Sommerfeldt, the district’s chief financial officer, said the district sees about $12 to $13 million in SAVE money per year.
Paying for the project with revenue bonds backed by the sales tax money does not require the district to put the issue in front of voters because it does not use property taxes or physical plant and equipment levy funds.
However, voters in the district have the right to file a petition by 5 p.m. Aug. 12 for an election on the bond issuance. The petition must be signed by at least 2,342 eligible voters within the district. State code requires that there be signatures equal to 30 percent of the ballots cast in the last election of school officials.
A valid petition would require the board to put the issue before voters or withdraw it.
If a petition isn’t presented by Aug. 12, the plan can move forward. The board is expected to approve its first bond issuance at one of its August meetings.
Although the petition requires a steep number of signatures, many residents are frustrated with the board’s decision to move forward without a district vote. One of these residents is Heidi Warrington, a 1973 West High graduate. She, along with her father, Evan Hultman, spoke to the board.
“I thought I was going to be in favor of this because I thought having one high school might finally crack the code on some of the racial divides that have plagued our city,” she said. “But the money is (an expletive). That’s just, that is so much money.”
She, along with resident Forest Dillavou, said the economy is tough right now in Waterloo, with high interest rates and recent layoffs at John Deere. Dillavou said interest rates are at a 23-year high and asked, “When does it stop?”
Waterloo Superintendent Jared Smith said a task force started in 2012 studied the idea of a merged high school. Cox, who is in his first term, said he had never heard of the project until he was on the board.
“I’m not against building new schools, I’m just against information you’ve got to quickly analyze,” he said. “It’s hard to analyze $165 million.”
“How can a community not know about (the idea of) one school? That should have been floating around a little bit more,” he said.