Manhattan Referendum To Build 4th School: IL Primary 2022

MANHATTAN, IL — Manhattan residents will be asked to vote on a proposed referendum for Manhattan School District 114 when they go to the polls for the June 28 primary election.

The referendum in questions asks Manhattan residents:

Shall the Board of Education of Manhattan School District Number 114, Will County, Illinois, improve the site of and build and equip a new school building and issue bonds of said School District to the amount of $85,000,000 for the purpose of paying the costs thereof?

Manhattan SD114 currently has three schools: Anna McDonald School, Wilson Creek School and Manhattan Junior High. The proposed fourth school would house junior high students, as well as allow for projected future growth, according to the district.

Here are some key questions and answers about the proposed referendum that Manhattan voters should be aware of when heading to the polls.

Why Do We Need A New School?

Manhattan SD114 has seen an increase of 596 students since 2010, according to data from the district. The total enrollment for 2022 was listed as 1,843, spread across the district's three schools.

Enrollment at all three current schools is listed at around 50 to 75 students above capacity. The proposed fourth school would reduce the overcrowding at the three existing schools.

The district projects that, with a fourth school, the number of students at Wilson Creek would drop from 726 to 500, Anna McDonald would drop from 563 to 400 and the existing Manhattan Junior High would drop from 554 to 400. The proposed fourth school is projected to serve 570 students.

What Grades Would The New School Serve?

The proposed fourth school would serve students in sixth through eighth grade, according to the district.

Wilson Creek School would shift to serving students in Pre-K through first grade; Anna McDonald School would serve students in second and third grades; and the existing Manhattan Junior High would switch to serving students in fourth and fifth grades.

Where Would The New School Be Located?

The new school would be located along Smith Road, directly east of the current Manhattan Junior High School, according to the district.

That land is currently owned by the district, so no additional cost would be required to purchase land for the proposed school.

Will There Be an Increase In Taxes To Pay For The New School?

According to the district, no.

The Manhattan School District and Board of Education have pledged to maintain the current tax rate of $4.25. Any increase in the dollar amount to Manhattan homeowners' taxes would only come from either: an increase in the tax rate from the other, separate taxing bodies; or an increase in the assessed value of the homeowner's home.

The Illinois General Assembly approved the district to exceed the statutory limit on bonds, but the voters of the school district will have the final say whether to allow the district to sell the bonds, even without an increase in the tax rate, according to the district.

How Can The District Fund Building The Proposed School Without Raising Taxes?

The district currently makes a bond payment of close to $4,000,000 annually. It stated that it feels confident it can pay up to $4,500,000 in bond and interest. Based on a 1.5 percent growth rate and a bond payment of $4,500,000 over 30 years, the district could borrow up to $73,000,000 at the current tax rate of $4.25. The district said it can construct the new building within that amount.

The district said it does not plan to restructure the current bonds, which are scheduled to be paid off in June 2028. The new bonds would be structured so that the interest only would be paid during the first five years of the bonds until the 2004 and 2015 bonds expire, according to the district.

If, in the future, circumstances change, and it becomes difficult for the district to make the bond payment within the annual operating budget, the district would be able to “call or refund” the bonds, which is similar to refinancing the debt at possibly a lower rate or for an increased amount of time, according to the district.

How Long Will It Take To Build The New School?

If voters pass the referendum June 28, then the construction could begin by Aug. 1, according to the district. The district expects projected to take between 16 and 24 months. The new school would then be ready to open by August 2024.

What Happens If The Referendum Fails?

Essentially, the district would get a "do over" in November during the general election and try to persuade enough voters to change their minds.

If voters again reject the referendum in November, then the district would consider putting the referendum back on the ballot in 2024; however, the district said it would also need to look at reducing some programs at its schools in the interim, such as pre-K and some special education programs, at its schools because of limited space.