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Molalla River board hears $95M middle-school project update as bond proceeds and contingencies grow
Summary
Board members were briefed on a middle-school capital project now presented with roughly $95.18 million in total project revenue (bond proceeds, premium, interest, grant), and staff described contingency buckets and options for unspent funds; no new levy was proposed and contingencies were framed as reserves for the project.
The Molalla River SD 35 board received an update Dec. 12 on the middle-school capital project and the district's project finances, which staff presented with a $95,179,772 project total composed of bond proceeds, bond premium, interest earnings and a state grant. Speaker 5 summarized the financials, stating the bond proceeds line in the district's financial summary appears as $76,926,667, the bond premium at about $7,000,013, and interest and grant proceeds shown as additional revenue that bring the project total to approximately $95.18 million.
The board discussed contingency planning and public communications. Speaker 5 told directors the additional proceeds provide a "prudent reserve" and outlined three contingency buckets that together total roughly $13 million: construction contingency, owner contingency and a professional contingency. "Those right here are not necessarily projected costs," Speaker 11 said, seeking reassurance that contingencies are reserve funds, not guaranteed spending. Speaker 5 confirmed the contingencies exist to cover potential overruns and that any unspent proceeds must still be reported as part of the middle-school project budget.
Superintendent-level staff emphasized that no additional tax levy was being sought beyond the amount voters approved. "The tax levy that we promised the voters won't be over the dollar 55 per $1,000 assessed value," Speaker 2 said, noting the project financing structure also reduces the levy impact in later years. Directors asked whether the district would use unspent funds for tier-2 items such as track and field improvements or to pay down debt early; Speaker 2 said those are board decisions to make later. Staff also confirmed the timeline for contractor selection: nine proposals were received and finalists will be interviewed this month.
Board members were encouraged to attend the bond oversight committee, which will report regularly; the committee's next meeting (Jan. 7) was referenced. Speaker 5 warned that project activity can move faster than the board's work-session cadence and pledged to provide timely updates as needed.
What happens next: staff will continue monthly financial reporting to the bond oversight committee and bring project updates to board work sessions; directors requested clearer spreadsheet labeling to help readers identify contingency and total lines.
