PERU – Peru Community Schools Superintendent Andrew Melin hopes plans for renovations or replacement of Peru Junior High School goes to a referendum, in which taxpayers approve or disapprove of the project.
Melin said if taxpayers approve the project, which is estimated to cost up to $25 million, it would not be subject to property tax caps that are going into effect. That would mean taxpayers would pay more than the 1 percent cap on property tax for the project.
At a school board meeting Monday, Melin updated board members on the process, reminding them he will make a recommendation at the Dec. 14 board meeting. There will be a public forum at 6:30 p.m. Dec. 8 at Peru High School, for patrons to make comments and ask questions. This will be the second forum.
The school board is considering three options, including renovating the 50-year-old current structure, adding to the existing high school and demolishing the junior high school or construct a new facility at a different location that would include an expanded athletic complex.
Melin said the first two options are the ones he’s most seriously considering because of the cost of buying land. His preferred option is adding to the existing high school for use as a junior high and then demolishing the existing building and using that room for athletic facilities.
Melin said the plan is to complete the construction on the high school and have the students move into that building to allow the demolition of the existing junior high building.
“The hope is to have the addition to the high school completed at the end of the school year so at the start of the next school year, the students would be in the new addition,” Melin said. “That would be the least disruption for the students.”
Option 1, which is the renovation of the existing junior high, has an estimated cost of $23.2 million, which could result in a tax increase of $39.88 for a home with an assessed value of $80,000 and $184.74 on a rental property with the same value.
The estimated price tag for Option 2 is $24.8 million, which would raise property taxes by $45.22 on a home with an $80,000 assessed value and $210.83 for a rental property of the same value.
Melin demonstrated a property tax calculator on the school’s Web site to board members, showing how patrons can enter their taxing district, the gross assessed value of the home and how much is owed on the mortgage to get an estimate of their individual tax impact from the project.
The site also includes a slide show with detailed information about the proposed projects and a place where patrons can make comments and ask questions.
If the project is approved, construction would start in 2011 and be completed in 2012, which is when the school’s property tax would be impacted. He said the current debt service tax rate is 55 cents per $100 of assessed valuation, and projections show the rate could go up to the 65 to 70 cents per $100 range with the project, using construction costs that have been estimated high.
However, Melin said the plans are “reasonably priced,” and in the current economy, construction costs are lower than they’ve been in recent years.
“We’re not going to be able to get this project for this amount again,” he said.
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