Greater Latrobe School District agreed to pay its share for renovations at Eastern Westmoreland Career and Technology Center, clearing the way for a bond issue of up to $6 million.
The school board this week agreed to incur debt for the project up to $2.96 million as one of three member districts that send secondary students to the Derry Township center.
Including interest, Greater Latrobe can expect to pay up to about $3.9 million over 12 years, through April 2033, according to district business administrator Dan Watson. That figure, based on Greater Latrobe’s market value, reflects just under 50% of the total maximum debt service of $8 million to be shared among the districts, he said.
“We have more than enough in our capital projects fund than is required to pay toward that debt service,” said Watson. There is about $5.3 million in that district fund, he said.
Derry Area and Ligonier Valley school boards already approved their respective district shares. Derry Area will pay up to $1.6 million (20%), with Ligonier Valley taking responsibility for up to $2.4 million (30%).
“Latrobe has a larger market value than Derry or Ligonier, so we pay a larger share,” Watson said.
The debt figures are based on a full $6 million bond issue. Project planners have estimated renovation of the 44-year-old career and technology center could cost between about $4.35 million and $5.85 million.
The technology center’s joint operating committee, made up of representatives from the three districts, commissioned a feasibility study to help identify likely work items, including enhancing security measures at the entrance, updating windows and the building’s rusting steel shell, and addressing aging sidewalks and paved areas.
The bonds are expected to close in May, according to center administrative director Todd Weimer. “At that point, we will begin working with our engineering firm to plan the bidding process,” he said. “We will move aggressively to get the project started but will prioritize instruction and avoid any disruptions.”
The member districts took a year-long pause before approving the financing plan, after some local tax revenues took a hit during the covid-19 pandemic.
The Eastern Westmoreland Area Vocational-Technical School Authority has been reactivated for the project, with each of the three districts represented.
Technology center budget approved
All three districts approved the technology center’s 2021-22 budget of about $4.2 million. Elimination of a woodworking teaching position and a growth in the number of employees who are waiving medical coverage resulted in cost reductions totaling about $87,000, offsetting other increases in the budget.
Greater Latrobe’s contribution toward the spending plan is about $1.6 million — up by about 2.3% from the previous year because the number of students from the district who attend the technology center also has increased.
Ligonier Valley is contributing $808,880, down by 1.7 %; Derry Area’s contribution is $880,749, down by about 2%.
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