Cape Henlopen officials say two new building projects could be done with no new tax increase, however, taxpayers would still need to agree to it. This means another referendum could be around the corner.

“I think we should at least consider it,” said board President Andy Lewis.

Brian Bassett, director of facility operations and construction, said there is a chance an addition to the high school and construction of a third middle school could be completed by using the current tax rate paid by residents. Voters would have to approve keeping the tax rate the same through an anticipated spring 2018 referendum. Without voter approval, the tax rate would decrease.

“It's very rare a district finds themselves in that situation,” Bassett said. “We've gone very high on estimates to protect us.”

While cost savings on construction is one way the district has saved money, Bassett said, lower bond rates have also helped keep costs down.

For Love Creek Elementary, the district used 6 percent interest on a bond sale to calculate the tax rate, but the district's FY17 tax rate proposal shows an interest rate of 2.82 percent. The lower interest rate results in a savings for Cape Henlopen School District.

Voters approved the $31 million elementary in 2014, agreeing to pay 40 percent of the costs to the state's 60 percent. Cape's tax rate increased by 27 cents per $100 of assessed property – 10 cents to cover the local share of construction costs. Voters also approved a 17-cent increase for operating expenses to pay teachers, staff and utilities for the new elementary.

In 2015, Cape Henlopen school board lowered the the tax rate by 2.7 cents for an average savings of about $6 a year.

Discussion for an addition to the high school and construction of a third middle school comes on the heels of a 2016 referendum to build two new elementaries and renovate two others. Voters approved the $154 million project which resulted in a 33-cent tax increase. The total tax rate for Cape Henlopen School District is $3.21 cents per $100 of assessed property tax.

Task force presentation

Bassett presented a long-range plan to school board members in May, based on the recommendations of an 18-member Facilities Task Force composed of educators, administrators and community members.

While the board will eventually approve the long-range plan, Bassett said its approval is not needed for the board to proceed with a major capital request from the state for a high school expansion and third middle school.

“Due to the urgency of timing, it is possible the board will approve us to move forward this summer with a request while we are simultaneously completing the official long-range plan,” he said.

If Cape Henlopen school board were to approve moving forward with the high school addition and third middle school, Bassett said, a major capital request with an estimated cost for the projects would be submitted to the state. By October, Bassett said Cape should know whether the state will issue a certificate of necessity and agree to pay 60 percent of the project. Cape officials could then authorize a referendum asking residents to keep their tax rate the same in order to pay for the high school addition and new middle school. If the process moves forward, Cape Henlopen school could ask for a referendum in spring 2018.

Of course, Bassett said, there is a chance the costs for the projected improvements could be higher than anticipated.

“The hope is the new projects will be possible without raising the tax amount any higher than the amounts approved in 2016,” Bassett said.

Officials: Needed space

Bassett and the task force recommend building a classroom addition onto the high school to ease an increase in student enrollment. The high school built for 1,600 is already at capacity with about 1,400 students enrolled. Bassett said the state considers a school at capacity when occupancy reaches 85 percent. For now, the estimated cost would be $11.5 million for 16 classrooms and a cafeteria expansion. Another $2 million is budgeted for costs to be discussed. The state would be asked to pay another $2 million for an unspecified number of consortium classrooms at the high school for a total cost of about $16 million.

The addition is proposed to be built on high school property along Kings Highway and would expand Cape High's capacity by 350 students, Bassett said.

The need for more space at the middle school level prompted the task force to consider a third middle school. Preliminary plans would be for a 600-student middle school built on the site of Shields Elementary, Basset said. The old Shields Elementary will be torn down after the Lewes School next door is renovated for the new Shields Elementary. The cost of the middle school is estimated at about $40 million.

The task force also agreed that a pool and new district office are needed, although those are lower priorities than the high school and middle school proposal, and they would not be included in a spring 2018 referendum request. And Cape taxpayers would pay the entire cost for a pool and new district office; there is no state money included, Bassett said.

New estimates for those projects were provided May 25. The estimate for a natatorium is $6 million. The estimate for a district office is $7.5 million with $900,000 needed to demolish the Fred Thomas building near Blockhouse Pond in Lewes where a new district office is proposed, he said.

Board Vice President Alison Myers said she's not sure whether the district needs a pool, but does see a need for a professional development center.

“I want teachers to be able to get together from different schools,” she said. “I'm not sold on the need for a pool, yet.”

However, board member Jessica Tyndall said the district should continue exploring a natatorium.

“It's something in the back of our community's mind already,” she said.

Major capital future projects are on the Cape Henlopen school board agenda for possible action Thursday, June 8.