Merced Union High School District forced to shuffle projects

The Merced Union High School District (MUHSD) board of trustees approved a revised five-year facilities plan Monday for several of the planned school improvements -- one of which includes the construction of a new high school.

All the projects are funded by Measure M money, a $149 million bond measure passed by local voters in 2008.

Plans changed for the district because the recession caused the promised $149 million in sellable bonds to drop to $96 million in value, school officials said.

"That's $53 million less than we thought we would raise," said Michael Belluomini, director of school facilities for the MUHSD. "Some projects will now have to wait because we won't be able to fund them by 2013."

Some of the projects that will be placed on hold: security fencing at all campuses except Merced High School; establishing Independence High School at Castle Commerce Center; and completing phase two of the Livingston High School enlargement.

Most of the major projects promised in the Measure M bond will be funded with bond money in the next two years. Some of these major projects include the construction of the Bellevue Road area high school, a stadium at Buhach Colony High School and the enlargement of Livingston High School.

Because the district has seen its tax base eroded, Belluomini said, it could take 40 years to pay off the bond measure.

Dave Honey, MUHSD school board trustee, said he worries about the duration of the financial instruments.

"All of a sudden we're talking 40-year bonds," Honey said to the board. "I know if I had a child and they went to buy a home with a 40-year mortgage, I would not support that."

Tim O'Neill, MUHSD trustee, said that if the district wants to build the projects on the assessed valuation, that's how the bonds need to be structured.

The time frame is based on the recession as it is now, according to Belluomini.

District officials said by 2013-2014 the tax base is predicted to grow and that could mean the district may sell bonds sooner.

Some of the Measure M projects are already nearing completion.

On July 3, the district will unveil new pools at Golden Valley and Buhach Colony high schools. The Livingston High School gym enlargement is under construction, but close to completion.

Funding for the Bellevue Road area high school project should be granted by the State Allocation Board in September, Belluomini said, and construction could start as soon as January.

Reporter Jamie Oppenheim can be reached at (209) 385-2407 or joppenheim@mercedsun-star.com.

This story was originally published June 25, 2010 at 1:44 AM with the headline "Merced Union High School District forced to shuffle projects."