2025 3 18 Packet 2

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Agenda Item
XI C. Discussion of Contributing $1,000,000 to the City Board of Education for Westside School 
Improvements and Canceling the 1984 Funding Agreement 
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. 
Following discussion during the March 10, 2025 work session, the consensus was to place 
this item on the March 18, 2025 regular session agenda under New Business for further 
discussion. 
Action to Consider 
If approved, motion, second, and vote are needed to contribute $1,000,000 to the City Board of 
Education for Westside School improvements and cancel the 1984 funding agreement. All future 
budget allocations to the City Board of Education would be determined during the annual budget 
process. 
Affected Departments 
Finance 
98