Olentangy board votes to explore $235 million bond and moves $50 million into reserves amid proposed state 'clawback'

The Olentangy Local Board of Education voted June 18 to declare its intent to seek county auditor certification for a $235,000,000 bond issue that would be used principally to build a high school, an elementary school and related district facilities while pursuing a “no additional millage” strategy. The board also approved, as part of the treasurer’s consent slate, a $50,000,000 transfer from the general fund into four stabilization and capital funds to comply with a proposed state carryover limit.

Board President Brandon Lester framed the action in the context of a stagnant state share of school funding and rapid local enrollment growth. “The state share is low. It’s not increasing that,” Lester said during his opening remarks, saying the board is trying to keep local costs low as enrollment expands.

Treasurer Ryan Jenkins explained the mechanics of a resolution of necessity under the Ohio Revised Code, saying the vote would authorize the district to ask the county auditor to certify estimated amounts, maximum maturity and an approximate millage rate for the ballot question. Jenkins said the $235 million figure would primarily address capacity needs and that the district intends to structure the debt so taxpayers do not see an increase in their bond millage rate.

Jenkins warned that a provision under House Bill 96 would cap general-fund carryover at 40% of the most recently completed year’s operating expenses and allow the county to reduce future levy collections above that cap. He said Olentangy’s current carryover is near 50% and recommended moving $50,000,000 out of the general fund into four accounts: $20 million to a self-insurance claims stabilization fund, $20 million to the capital projects fund, $5 million to a workers’ compensation stabilization fund and $5 million to a severance/termination benefits fund.

“We believe that we cannot... continue to serve the way that we have been expected to serve by our community, by not, thoughtfully and wisely, moving these resources to places where we are still able to use them,” Jenkins said, explaining the planned transfers and the statutory basis for the funds.

Board members asked clarifying questions about how the bond and transfers interact with local taxes; Jenkins and others stressed that “no additional millage” refers to the district’s ability to issue debt without increasing the bond tax rate because assessed values have risen. The board approved the resolution to seek auditor certification by roll-call vote; trustees responded affirmatively during the roll call.

The $50 million transfer was included in the treasurer’s consent agenda and approved along with other financial items (minutes, May financials and appropriations). The resolution to proceed to the next administrative steps does not itself place the bond on the ballot; if the board decides to proceed later, it would adopt a second resolution and then the question would be certified for the November election if timelines are met.

Next steps include auditor certification of the estimated millage and other statutory items, further board discussion over the coming weeks about project scope, and a later decision about whether to place a bond question before voters.