Box Elder School District proposes $55 million loan to build two elementary schools; board debates voter approval

Neil, the district business administrator and financial advisor, told the Box Elder School Board on Friday that the district needs about $55,000,000 in financing to build two elementary schools — Discovery expansion and West Tremont — and to fund associated capital work. "We need a loan to build these schools. We don't have $55,000,000 in reserve to build the schools," Neil said, adding lenders might require a roughly $4.5 million debt‑service reserve under worst‑case underwriting terms.

The package outlined by staff included secure vestibules (an estimated $2,600,000, citing HB 84 (2003) requirements for secured front entrances), a district‑wide air conditioning effort ($5,100,000), preventive sewer inspections and repairs, playground replacements, and vehicle and bus fleet refreshes. Neil said inspectors are currently camera‑scanning sewer lines this fiscal year under existing budgets to identify failure points before repairs are budgeted.

The presentation included project-level detail: Discovery Elementary would add 12 classrooms (net about 8 general‑education rooms after removing portables), increased gym space and a $15,000,000 total project cost including air conditioning; staff estimated Discovery would gain capacity for about 180–200 students. Neil also noted earlier projects (Golden Spike) used a mix of loan proceeds and fund balance and that fund balance history shows large swings tied to construction earmarks.

Board members spent much of the meeting debating the funding mechanism. A director noted an 8,000‑signature petition opposing the prior lease‑revenue bond approach and asked whether the district was "going around" residents by using a direct loan. Neil and other board members said the immediate growth forecast and building conditions — including overcrowded classrooms and failing building systems — make delay risky. "If we wait that time, we're gonna have 15 more portables in North Bend than we have right now," Neil said.

Several board members urged polling or a ballot question, saying voter approval would build trust. Others said the district is a representative body with a duty to act on urgent facility needs without deferring long enough to materially increase costs. No formal vote took place; Neil said the capital requests will be included in the proposed budget for a June board vote and that staff expect some projects could begin design this fall if funded.

Board members who pressed for public input did not dispute that the projects are needed; they questioned the financing vehicle and emphasized the importance of community trust. Neil said the loan approach had been reviewed by bond counsel (Chapman and Cutler) and that municipal advisers and underwriters were chosen to manage conflicts and secure competitive terms. He also noted the district explored other options and that there are "no grants available to build schools."

The board did not adopt financing tonight; the district will return the proposed capital items in the budget for a June decision, and staff said they would refine cost estimates, complete designs and bring procurement actions as required.