2025 3 10 Work Session Packet 1

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Agenda Item 
 
III F. Discussion of Amending the Contract Between the City and the City Board of Education 
Regarding Debt Payments for the New City School Project 
Overview 
An agreement between the City and the City Board of Education was approved during August 
2020 regarding the new city school construction project and how the savings from the school 
consolidation would fund the annual debt payments. Currently, the city Board of Education pays 
the city $700,000 per year to go toward debt payments for the new schools. During the joint 
quarterly city and city Board of Education meeting conducted on February 24, 2025, the school 
board requested a reduction in the annual debt payment amount. Their rationale is that since the 
city schools have taken back Westside, they need additional funds for utility costs and to update 
that facility such as new doors, ceiling tiles, glass, new fire panel, water fountains, replacement 
HVAC system, new roof, and future cost including fire sprinkler system, furniture, and equipment. 
The school’s request is a reduction of $250,000 from $700,000 to $450,000 per year. Attached is 
the city’s debt schedule regarding this project. 
 
A memo from the Director of Schools is attached. Also attached is a memo from the city’s Finance 
Director offering a solution of giving the city schools $500,000 that they gave the city during June 
2023 to go toward building the new schools and an additional $500,000 from the Capital 
Improvement Fund that has been held in reserves since 2016 for future funding of school debt. The 
$1,000,000 would cover about four years of the $250,000 request without any amendments to the 
original contract. This situation can be reviewed and reevaluated in four years to determine future 
action. Furthermore, the Finance Director is requesting that the  1984 funding agreement between 
the city and the city board of education be formally cancelled. 
Action to Consider 
Consensus to move this item to the March 18, 2025 regular meeting for consideration. 
Affected Departments 
Finance 
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