Issaquah board adopts $138.7 million capital-levy contingency as district presses Feb. 11 bond campaign

Issaquah School District board members voted Wednesday to adopt a six‑year capital levy of $138,700,000 as a contingency if the district’s February bond measure does not win voter approval.

The action followed a detailed district presentation on the Feb. 11, 2025, Proposition 1 general obligation bond — a $231,600,000 package the district says was reduced to focus on “safety and student learning needs,” plus an update on a long‑planned new high school project.

District Chief of Finance and Operations Martin Turney summarized the bond, saying, “this bond package was reduced to $231,600,000 to address first and foremost, safety and student learning needs,” and noting it is structured to keep the district’s projected tax rate at $3.09 per $1,000 assessed value in calendar year 2025. Mark Sherwood, the district’s executive communications director, walked through outreach and the district’s plan for a public project‑oversight committee and voter pamphlets ahead of the election.

Why it matters: Issaquah’s high‑school enrollment has grown well above original building capacity, and the district has been pursuing a new high school site for years. Turney told the board the new high‑school project has a total projected cost of $292,700,000; the district has spent about $20,000,000 to date and reports $90,000,000 of unspent funds plus $44,000,000 from 2022 capital construction funds available for the project. Turney also told the board the district estimated about $16,000,000 of site‑specific accommodations for the adjacent Providence Point community.

Student voices and public comment were part of the discussion. Several student representatives who attended a recent legislative conference described learning about funding gaps and the “big three” issues for state funding (special education, transportation and MSOC). Parent Kevin Nichols urged passage in public comment, calling the bond “focused” and noting, “this bond maintains our current tax rate of $3.09 per thousand assessed value.”

Board members pressed staff on technical details used in collateral materials. Director Gallinger and others requested that the district present enrollment as headcount (each student counted once) rather than FTE for public‑facing slides; Turney and staff agreed to add headcount alongside FTE in future materials and said the district is currently about 1,400 students over building capacity. Directors also asked for clearer labeling on slides that show how project costs and reserves are combined, and for explicit calls to source‑check external charts circulating in the community.

The levy motion: After considering options and community feedback, the board voted to adopt a resolution to place a six‑year capital levy on a future ballot as a backup financing plan. The board motion authorized a six‑year levy totaling $138,700,000; members approved the motion by voice vote (recorded as passed). District staff explained that state law currently prevents the use of non‑voted limited‑general‑obligation (LGO) debt for new construction, limiting the district’s ability to front‑fund new buildings with levy proceeds; the transcript records the district’s staff referencing Senate Bill 5095 as a proposed statutory change under consideration in Olympia.

What the vote does and does not do: The levy adoption is a contingency; the district’s preferred path remains passage of the Feb. 11 bond. District staff said a passed bond would allow immediate construction and reduce the risk of additional escalation in construction costs. If the bond fails and the levy route is used, district staff warned it could delay timelines and add exposure to cost escalation because levy proceeds come in over time. The district’s timeline for the Feb. 11 election includes pamphlets mailed in late January, ballot drop box dates and a certification date in late February.

Votes at a glance: - Resolution authorizing a six‑year capital levy for $138,700,000 — outcome: approved (voice vote). (Resolution text as presented; mover/second not specified in the transcript.) - Several related actions were approved later in the meeting (see “Votes at a glance” below).

Next steps: Ballots for the Feb. 11 bond are scheduled to be mailed in late January, and the district plans public forums and a Jan. 23 town hall. The district said it will continue outreach — including short videos, school‑level materials and a project oversight committee if the bond is approved — and will track state legislation that could change how levies and non‑voted debt can be used for construction. If neither the bond nor the levy is approved, the board said it will return to contingency planning for capacity and operations.

Votes at a glance - Consent agenda (multiple routine items) — approved by voice vote. - Adopt 2025–26 budget development guidelines (board motion) — approved (voice vote). The guidelines include maintaining a $20,000,000 reserve for future school facilities and raising the board emergency reserve to $1,500,000. - Accept Monitoring Report: Operational Expectation 9 (Communicating with the Public) — approved (voice vote). - Change March board meeting date from 03/12/2025 to 03/13/2025 and set work study times — approved (voice vote). - Approve winter school board retreat dates (March, two‑day retreat) — approved (voice vote).

Reporting and provenance: The bond presentation and follow‑up discussion were led by Martin Turney (chief of finance and operations) and Mark Sherwood (executive communications director). The board’s vote on the levy resolution occurred later in the meeting after extended public and board discussion. The transcript segments for the bond presentation and the final levy vote are documented in the meeting record.

(For the text of the adopted levy resolution, the district agenda packet and the district’s project‑by‑site cost breakout, see materials posted on the Issaquah School District website.)