Lancaster school board grapples with size of bond referendum, Indian Land’s needs
The Lancaster County School District continues to weigh its long list of school needs for a 2024 bond referendum, including another new high school in Indian Land, against the perhaps 20% or more tax rate increase it would take to pay for them.
Adding another Indian Land high school to the referendum next year could well swing the vote if the high-population panhandle area turns out to support it. But can the whole county afford it?
The school board met for almost four hours last week to work through ballot details. A recent board subcommittee recommendation of countywide needs like new schools and facility renovations would cost the district about $641 million. That price tag would mean tax rate increases.
But board members say they’ve told the community they would try not to raise the tax rate. So the board has to decide how many of those subcommittee recommendations to fund, and at what price.
If the district can get costs down in the $300 million to $350 million range, the board may be able to absorb most or all of the costs using existing capital revenue sources and additional money from the expected 4% population growth rate.
At perhaps $200 million by itself, a new high school in Indian Land would almost certainly lead to a tax raise increase if it’s included.
Below are some key points the board has to consider:
What school projects could be on the ballot?
The subcommittee recommendation last month included a new high school and elementary school, plus middle and intermediate school renovations in Indian Land. Athletic support space at the existing high school and a car loop extension for the elementary school also made the Indian Land list.
South of the panhandle, recommended items include new elementary schools in Lancaster and Kershaw, a new middle school in Buford, a new gym at Andrew Jackson High School and renovations across a host of other schools. The recommendation also included district-wide upgrades like cameras, activity buses and maintenance space.
How much would the bond cost taxpayers?
The board discussed ballpark figures last week. The full $641 million of recommendations would mean a tax rate increase of about 22%. In rough estimates, the board figured a $400,000 home in Lancaster County might pay an additional $40 per month at that rate.
The board could narrow that list to critical needs, and either hold off on the rest or put it as a second ballot question in hopes of getting top priority items approved.
One version of a critical needs list the board pitched last week includes all the proposed elementary and middle schools, the gym at Andrew Jackson, the district-wide items and everything in Indian Land except a new high school. That list would fall below the $350 million mark where the board could make it happen without tax increases.
That plan would push off other typical, year-to-year capital needs to make way for the new items. It also would rely on continued community growth.
Why is the high school so important?
As of the 2020 census, the Indian Land panhandle accounted for more than 40% of Lancaster County’s population. That rate continues to grow as Indian Land outpaces new residential growth in the area.
Melvin Stroble, who represents Indian Land on the school board, said the drive from the northern tip of Indian Land to the high school that opened in 2021 takes 30 minutes. It can take longer during rush hour as drivers pass through Indian Land between Ballantyne, Charlotte, Fort Mill and Rock Hill.
Stroble estimates a new high school might get 70% to 80% of Indian Land voters behind the bond referendum.
“If we get a third of the other areas voting yes, Indian Land can carry the bond,” Stroble said. “And we’ve proven that in the past.”
Likewise, leaving it off the ballot could jeopardize the larger vote, he said. And coming back for a later countywide vote with just the Indian Land high school on it wouldn’t be a fair request. The high school either would stand little chance or the board would have to come up with new projects in other parts of the county, Stroble said.
Why should the high school wait?
Board members say Indian Land needs more resources than other areas due to population growth, including a new high school. They also worry about the affordability of a big tax rate increase across the county, but particularly to its south.
“Indian Land can pass the bond whether we all get on board or not,” said board member Courtney Green, who represents Buford. “That’s just a fact.”
But, she said, sending so much money to Indian Land will be a hard sell in places like Buford and Kershaw. “You’re not going to get Buford’s support,” Green said.
Margaret Gamble was on the board the last time a referendum vote happened, in 2016. There was concern then that the public would not support a bond over $200 million so that board cut it to $198 million.
Gamble said a bond in the $300-million range now is an easier sell than one for the full amount, or that includes the new high school.
“We’ll never get $600 million passed in this county,” Gable said.
What about high school sports?
School board chairman Brad Small said the existing Indian Land high school will become a 5A high school in coming years — the largest classification in South Carolina for sports programs. Classes are based on student enrollment.
Indian Land is 4A now and competes with schools like Lancaster, York, Catawba Ridge in Fort Mill and both Northwestern and South Pointe in Rock Hill. Area 5A schools include Fort Mill, Nation Ford, Clover and Rock Hill.
There aren’t as many 3A schools in the area, the nearest being Chester.
“Are they OK having two 3A schools up there, versus one 5A school?” Small said.
Stroble believes Indian Land residents aren’t as concerned about sports, compared to other issues.
“There is a huge number of folks who live north of (S.C.) 160 who are begging for another high school because that traffic impacts them dramatically,” he said.
What about high interest rates?
Dollar figure discussions last week were largely speculative. More detailed figures could take shape later this year or early next year.
The district could use bond anticipation notes to help keep costs lower. They work like construction loans. The district wouldn’t borrow the full amount allowed by a referendum all at once since the district couldn’t build all the projects at once. One-year bonds to cover that year’s construction could be used for a few years until the district locks in the full amount at a 20-year or more bond.
Bond anticipation notes could allow for lower interest rates on the bond if rates decrease in the two or three years before the bonds are issued.
Other cost variables include the impact of new elementary schools that in parts of the county could combine existing elementary schools. Those moves would leave the district with newly freed building space for other uses.
This story was originally published November 14, 2023 at 11:47 AM.
