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Operations update: Richland 2 pauses $24 million in projects, cites inflation and long-term capital needs
Summary
Chief of operations Will Anderson told the board that inflation has forced the district to pause roughly $24 million in bond projects and that long-term annual facility investment needs exceed current funding.
Will Anderson, chief of operations for Richland School District 2, told trustees on May 27 that inflation increased construction and materials costs and forced the district to pause a set of planned projects under the 2018 bond referendum.
Anderson said the district has roughly $774,000 remaining in bond funds under his management and that, after approved transfers, staff have identified $16,623,870.67 needed to complete projects that have finished design. "You can see under the bond projects, which is the funds that I'm responsible for, we have $774,000 left," Anderson said.
Why it matters: Anderson said the district paused about $24,000,000 of projects because inflation made previously scoped work unaffordable; projects paused include planned middle-school field houses and classroom additions at several schools. That pause affects long-term facility planning and the timing for upgrades such as HVAC, roofing and restroom renovations.
Details: Anderson listed paused projects by school name and described completed improvements funded by the bond so far: secure front entrances, camera and card access upgrades and other safety investments at every school. He said inflationary pressure has increased estimated replacement and renovation costs and that district-wide, a multi-year funding plan is required to keep schools on a sound life-cycle schedule.
Long-term need: Anderson said the district's estimated capital needs are large; using current cost estimates, "we should be spending about $43,000,000 just on our facilities" annually to maintain an appropriate replacement and life-cycle schedule. He told the board staff will return with more detailed line items and funding recommendations and that the district is meeting with financial advisers to model borrowing and other options.
Next steps: Operations staff will produce a detailed list of proposed borrowings and capital priorities, present educational sessions for trustees on facility needs and work with the finance office on feasible options for the board to consider in the months ahead.
