Lenoir City board approves Oakdale bond to separate elementary and middle grades

The Lenoir City Schools Board of Education voted unanimously Sept. 25 to approve the Oakdale bond proposal, a project intended to separate elementary and middle grade bands by finishing Lenoir City Middle School and adding classrooms to create a Lenoir City Intermediate School.

Superintendent Dr. Smith said the project aims to create three distinct schools serving pre-K–2, grades 3–5 and grades 6–8, and to provide dedicated space for STEM labs and appropriately stocked libraries. "This project does not require any additional community funding requests," Dr. Smith told the board, saying the district will use its designated sales tax fund and capital fund balance to make bond payments.

The superintendent framed the proposal as a response to changing instructional and social-emotional needs across grade bands, citing state guidance and recent legislation that separates elementary and middle school requirements. "The sales tax fund and general purpose budget are mutually exclusive," Dr. Smith said, adding the bond payments will be paid from the sales tax fund and, under the district's projections, the fund balance will recover after several years even while making debt service payments.

Dr. Smith described operational pressures from mixed-grade scheduling and staffing needs created by overlapping grade bands. She said Tennessee Department of Education guidance allows local boards to determine elementary (K-6) and middle (5-8) grade configurations and that recent state law on elementary physical education (described in the meeting as applying to K-5) has increased scheduling constraints for schools that serve both elementary and middle grades under a single bell schedule.

The presentation included financial details: the district showed a chart comparing its existing refinanced bond (scheduled to be paid off in five years), the proposed Oakdale bond, combined debt service, and projected sales tax revenues. Dr. Smith said the sales tax fund balance increased about 90% from 2009 through February 2025 and that the district built the designated fund intentionally to pay for projects such as this one. She also noted an existing EESI loan for a separate project is paid from the general purpose budget and is expected to be a wash for the district.

Board members spoke in support. One member said the district has "always been good stewards of the money," and another emphasized the need to provide facilities that match instructional programming. The board moved to approve the Oakdale bond proposal; Mitch Ledbetter made the motion, Lacey Murray seconded, and the roll call vote returned four ayes with one absence (Tammy Powell).

The board did not specify the bond's principal amount, exact amortization schedule in the public remarks, or timeline for construction beyond the financing details presented. Dr. Smith said the district has the ability to call the bond after eight years rather than 10 if refinancing becomes desirable.

With the vote recorded, the board had no further business and adjourned.