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Mercer Matters Podcast: Episode 2 – 2025 School Bond Discussion with MISD Superintendent Dr. Fred Rundle
100 Plays1 month ago
In this second installment of our three-part series on the $165 million Mercer Island School Bond Measure, we’re joined by Superintendent Dr. Fred Rundle.
Mercer Matters is committed to bringing you unfiltered, unbiased conversations with stakeholders on all sides of this issue. This episode digs into the details—costs, benefits, and what’s at stake—so you can decide for yourself.
Please be sure to catch the other two episodes from this series, including Mike Cero from the Vote No campaign and Jennifer McLellan with the Vote Yes campaign. Subscribe today and get the full picture before you cast your ballot!
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Transcript
Introduction and Host's Background
00:00:00
Speaker
All right, hi everybody. Welcome to this episode the Mercer Matters podcast. In this episode, we'll be discussing the April 2025 Mercer Island School District bond measure ah with Dr. Fred Rundle, who's the superintendent of the Mercer Island School District.
00:00:15
Speaker
I'm Ben Sharp, your host. I'm a Mercer Island resident. I've got three children in the school district. And as of this recording, I'm undecided and admittedly undereducated about
Role of Superintendent and School Bond Measure
00:00:26
Speaker
the bond measure. So I'm looking forward to ah to talking with you today. Rundle, thanks and welcome to the to the show here.
00:00:33
Speaker
Ben, thanks for having me. I appreciate the opportunity to talk a little bit more about the bond. As I've been saying to all the groups I've spoken to, whether or not it's Rotary or a PTA group, ah my spiel is kind of the same. And that is, I'll be speaking in my position and in my capacity as superintendent. And as such,
00:00:54
Speaker
At this point in the campaign, i will stay very factual and really ah shy away from trying to tell people how to vote. That's not my role right now.
00:01:05
Speaker
As you are undecided right now, you just need information so you can make the best choice on that ballot for you, your family and whatnot. So I hope to provide information to help people make a choice, but not to tell them how to vote.
00:01:17
Speaker
Well, thanks thanks very much for that. And thanks for for setting the stage. And i I just want to start out you know by saying thanks for all that you do for our kids. you know I've known you for several years now, and we've communicated quite a bit from time to time on various things. And I've always found you tod be honest and ah frankly, an excellent communicator and a great advocate for kids. So i'm I'm excited to talk to about this today.
00:01:40
Speaker
but Maybe to start, would you mind just giving, ah for those in the audience who who don't know you or know of you that well, ah would you mind just giving a brief background about yourself? and And you've got a lot of experience within the district, so maybe just some some highlight reel of...
00:01:56
Speaker
of ah Dr. Rundle and the Mercer Island School District. Yeah, thanks. And thanks for the compliments. the The support is appreciated, certainly from parents like you.
00:02:06
Speaker
So, you know, interestingly, I arrived in 2009 for the 2009-10 school year to be the principal at Lakeridge. And I had come from Colorado and was kind of coming to the Pacific Northwest with my wife and then really young, two young kids. And now I have three, um you know, to raise our family. And
Challenges in Education and Bond Measure Projects
00:02:28
Speaker
I really,
00:02:29
Speaker
was looking for a district that was very different than what the one I was in. And so it wasn't so much the demographics, I was really looking for size. um I came from a district with 60,000 kids and I was one of 48 elementary principals.
00:02:42
Speaker
So when I arrived here and I was one of three, it was both a shock, but also a relief. I really um appreciated that. Had the opportunity to serve Lake Ridge for four years. And then Dr. Plano hired me as a director of learning services where i was able to serve in that role.
00:03:02
Speaker
Then move into assistant superintendent of learning services. And here I am now in my third year as the superintendent of our school district. So I think the era that i can best describe is coming out of the recession,
00:03:16
Speaker
of the mid 2000s when I arrived and then taking us through ah pretty decent boom in in demographics in terms of growth students into the district and now the covid piece.
00:03:31
Speaker
And now what's going to be the new reality for public education, both in terms of student enrollment and funding. So that's really the new era that we're in. But that that's been my those have been kind of some of those benchmarks along the way.
00:03:45
Speaker
Well, thanks for that background. To to dive right in would you mind just giving high-level overview of the measure itself, what's in it, and how you see, if passed, the work that will be done benefiting the the kids and staff of Mercer Round School District? Sure.
00:04:03
Speaker
um ah The first and the biggest kind of core part of the project is the second phase of the middle school that began in 2014.
00:04:14
Speaker
So in that 2014 bond package, because of the resounding no from the 2012 election, that would have rebuilt the entire middle school and rebuilt three elementaries.
00:04:27
Speaker
um you know The district scaled that project back and built one elementary, Northwood, to create a fourth and then built half the middle school. And then we built 12 classrooms on the east side of the high school. That was that $98.8 million bond in 2014. So,
00:04:41
Speaker
bond in twenty fourteen so This bond, the bulk of the project, 51% plus another 10 or 12% that I can talk about in a second, is really the second phase of the middle school.
00:04:55
Speaker
Right now, our students at the middle school move from the new facility that was built, then the 100, 200 building that exists to the north, And then kind of to the ah east is the 300 buildings. So a student might navigate three different buildings and and come and go out of classrooms into those three different buildings.
00:05:17
Speaker
So the idea of this particular project would be to get rid of the 100, 200, 300, create create the second phase of the middle school and bring the entire school underneath one roof.
00:05:29
Speaker
um So students are inside a contained facility all day. They're not coming and going out of different spaces. So there's certainly a safety element to that and to have that point of single entry.
00:05:41
Speaker
From a teaching and learning standpoint, I think what we've seen really take off in those newer classrooms, Ben, um have been not just the classrooms themselves being updated and whatnot, but it's really the space in the hallways. So instead of having what you currently experience in our older elementaries,
00:06:01
Speaker
certainly our high school and our older middle school, is you get those long corridors, those long hallways with not a lot of space for kids to go out and then collaborate and continue conversation.
00:06:13
Speaker
So if you walk through that newer facility on any given day at the middle school, I was just there earlier this week with Ms. Budges and we were doing a walkthrough. those teachers, because of the way that it's constructed, those classrooms spill out in and kids are working in groups in the classroom and out. And so it's just a different feel. It's that more collaborative experience.
00:06:35
Speaker
It's also has that two story rather than that single story. So you can compact ah the campus a lot more. ah utilizing then creating more green space.
00:06:46
Speaker
One of the things that we heard from the community was, you know we need more spaces for performances and for students to showcase their talents. And you know there's long been different conversations in the community. Certainly don't wanna get into all of that around, is there a performing arts space? And so we have allocated as part of this, and that's where that kind of more than 51% comes in on this project at the middle school.
00:07:11
Speaker
for 150, 200 seat black box theater where we can have smaller performances, but there's also down in the community. So it's gonna be built off the parking lot.
00:07:23
Speaker
So there'll be entrances in and out for afterschool and evening events. So we've really tried to think about not just what happens during the school day, but what might also be youth utility and and how might we use that school um in other ways.
00:07:39
Speaker
as we know just to And just to stop you there for a sec, I just have a question. So that 500 seat theater, is that intended to be used by the community at large or other other schools and school programs or just IMS? Like what's the intention? Yeah. um And quick correction, 150 to 200 seat.
00:07:56
Speaker
Oh, sorry. I misheard that. Sorry about that. It just got a lot larger. Yeah. Right. You just added to the cost on me. No. You know, obviously, primarily during the day. Right now, we really don't have a dedicated space for our choir. The choir actually goes to the 100, 200 building because our performing arts, band, orchestra, um drama, you know, we're just continuing to grow that program even with our enrollment. And so having this space offers us not only another classroom during the day,
00:08:30
Speaker
But then we can do small kind concerts or ah venue to do presentations to parents. Right now, we use that commons area, which which is also our cafeteria. And it works, but sometimes you want a more just intimate conversation with parents or community members.
00:08:47
Speaker
And then I would definitely say it becomes a rental space for the community um for spaces. And that's why it's positioned where it is in the diagrams as the community may have seen online or in other webinars.
00:09:00
Speaker
Okay, that's that's helpful. Thank you. Would you keep going? Yep. So moving up to the north, the next big project is the high school. And I think of the high school really in two, there's two components to it.
00:09:13
Speaker
The biggest component is how can we really think about the it you know the the interior heart of the school from the gymnasium through the performing arts center and the commons area, and then up those 200, 300 hallways.
00:09:28
Speaker
Believe it or not, it's been since the mid 90s since we did any real upgrades in that 200, 300 hallway. For those who were here and they remember the mushroom and and the different components, I wasn't here at that time, but ah people remember it fondly, but also remember it going away as not a bad thing.
00:09:47
Speaker
So the idea is really to update and improve the classrooms in that core 200-300 hallway. um We have a radio station that has booths on both sides of a hallway. As the program's grown, we didn't have space on one side. So we have teachers going back and forth.
00:10:03
Speaker
um Our video production teacher just won video production teacher of the year, a national award. and The Current, which is their production, their news production, um has won awards this year. It's starting to really grow.
00:10:17
Speaker
Our robotics club, who's been in the news recently, and they have some competitions coming up, it's taking off and they've outgrown their space. So things and classes that maybe weren't as prevalent in the mid-90s are really now starting to take off. And then, of course, we have our core classes,
00:10:34
Speaker
whether or not those are AP psychology classes and others where it would be, you know, ah honestly just updating the facility, the carpeting um and and the amenities in the classrooms, just providing that experience.
00:10:48
Speaker
The Performing Arts Center we've added on to a little bit using CAPTEC dollars, but what we haven't done is a real update to the sound system and the lighting in there.
00:10:58
Speaker
And when you go to some of the other performing arts halls across Kinko, you know, we've got a nice facility, but it doesn't have that true performance and high standard that I think would really improve that space for our student performances and and community lectures and so and whatnot.
00:11:18
Speaker
And then in the gymnasium, you know, we have Fine Arts Showcase coming up on April 1st and 2nd. And by the way, I think it's the largest event I've been to. The turnout is insane.
00:11:29
Speaker
Our gym isn't just a place for athletics. Our gym is a performance hall. I was in there the other day with all of the orchestra students from fifth grade through 12th grade. Then our choir did the same. And, you know, we really need new lighting in there. We need new paint. We need new sound in there to really make that space versatile as a performance area.
00:11:48
Speaker
And then our locker rooms, the main piece that's changed is how students and the physical training. We had a great boost from booster clubs to update our weight room last year, um but are just our training facilities where students get care during the athletic season. And then our locker rooms are just really out of date.
00:12:07
Speaker
Again,
Accessibility and Future Planning for Schools
00:12:08
Speaker
those are that mid-90s, and and um we'd like to really bring our visiting and and home locker rooms and ah really up to up to speed And then the the piece that is the not so exciting part, but will be really necessary is, you know, we've heard from our our students in particular and and our staff that the HVAC system, ah we have wild swings in temperatures from classroom to classroom.
00:12:35
Speaker
Some are cold, some are hot, and we really need to update our HVAC system. And if we start touching the HVAC system and some others, we also then really need to update the fire sprinkler system across the school.
00:12:49
Speaker
Obviously, it passes code because of when it was built. But if we're going to make some of these changes, we're really going to need to update that. And you know it's everything from ah voices speaking around you know emergencies to flashing lights to actually the sprinklers themselves.
00:13:06
Speaker
um So that would be another part of the project. And then ancillary to the high school is down at Crest Learning Center, where we have a number of our alternative learning classes, online classes where students go to meet.
00:13:19
Speaker
We'd really like to create a secure vestibule for safety entering into that school. It's the only school facility right now that doesn't have that double entry with the vestibule.
00:13:30
Speaker
We don't have a health room area for kids to go to. So really just trying to change that front entryway. And then, of course, their HVAC as well. And then, ah you know, the one that the community, if they've ever been to the bathrooms in the stadium, um it's certainly something you don't want to have to spend money on. But those are even ah more vintage than the mid ninety s So there would be a piece there um of really redoing those bathrooms for our for our stadium.
00:13:58
Speaker
no No cover for the stadium, though. No cover for this particular stadium project. That did come up in the conversations with the team who was assembled, large almost all community members, to have conversations. Mm-hmm.
00:14:14
Speaker
It really comes down to you know where do we feel like we need to spend the but money right now? And because that stadium also serves as the retaining wall for that upper JV field, any changes of trying to do the covered area would require a lot more than just the cover. If it was just the cover,
00:14:35
Speaker
um I think the community might have a different conversation, but because it would involve so much more engineering, the cost on that is really going to have to be brought through at a different time. so okay um But you bring up a great point. We do get that question a lot, especially for those of you who are watching your kids sports. And, you know, many of the other Kingco schools certainly have those covered areas, but that's that's kind of why.
00:15:00
Speaker
And then we have some accessibility challenges. If you've ever been to our administration building, it's a two story building. But in order to go from one floor to the other, the only way to do it internally is through stairs. So we don't have a way to help someone who or meet the needs of someone who.
00:15:19
Speaker
um is in a wheelchair or has other ambulatory needs. And so they actually have to go outside the building and walk all the way around. um The parking space for for um the handicaps parking space is way down by Crest. So we'd like to reconfigure that whole area outside of Crest, put in an elevator in in the admin building, and create just better accessibility to both facilities.
00:15:45
Speaker
And then the last two, which are 1% of the bond each, one is you haven't heard me talk about elementaries. And one thing that we heard loudly and clearly when we were out last fall, fall 2023,
00:16:01
Speaker
about the bonds was really let's not touch the elementary schools right now we don't know enough about the long-term needs of our elementaries it was certainly clear people didn't want to contemplate closing in elementary um and so we put money into this particular bond just over a million dollars to do a really extensive study over the next several years and that study would be everything from you know which of the schools island park uh lake ridge or west mercer can we build on site while kids are still there which of the schools if we were to build on site would we have to move students to another school for a year or or a year and a half um so we really need to gauge the level of disruption that's going to happen and there was concern certainly that if you had a fourth or fifth grader
00:16:51
Speaker
displaced during elementary school and then they went to high school and a project was go or middle school and they went up then they had a project you could have multiple years of projects now we might run into that a little bit with the middle school to the high school but the bulk of the high school projects that are most disruptive will do over the summers on there So those are the main projects that we're looking at, Ben, that came about in this particular bond from that committee that pushed it forward, talking to community members, and then the board ultimately made that decision to arrive at 165 million.
00:17:28
Speaker
And I've had some great questions around that number and and why that? Because we could certainly, you know, we had 50 some odd projects at the high school that we identified and we narrowed it down to about eight.
00:17:40
Speaker
And the reason was, is really trying to be thoughtful. We know that our community is very um astute with how they spend money and where they want to put money. They've told us in the past when we've gone for large bonds in 1990 and then in 2012, that if they don't have a clear picture of it and it seems too large, they're going to vote it down.
00:18:00
Speaker
And that's why the regroup of the ninety eight point eight million dollars in 2014, I think, was successful as it was more modest. And it represented something people could really see with Northwood and half of a middle school and some in the high school.
00:18:15
Speaker
And so when you escalate out ninety eight point eight million in 2014 to today's dollars, it's about one hundred seventy million. And
Community Involvement in Bond Measure Planning
00:18:24
Speaker
so that's how the board really tried to shape and and put some parameters to say we need something commensurate with what happened in 2014.
00:18:33
Speaker
because we need to honor what our community has told us in the past and really focus on what we need, not what would be great to also have. That's that's really helpful. And that was actually going to be one of my next questions was just a little bit on how the sausage is made arriving at, you know, what's in the bond and the cost, right? Because obviously you you're going to solicit feedback from various stakeholders and you're probably going to get a massive list of wants.
00:19:01
Speaker
Yep. Or needs. And i don't know, could you just spend a minute talking about what's the process of getting these projects? How are they identified as being the ones? um Is it the people that brought you the most cookies or the board? I mean, you know, but most seriously.
00:19:17
Speaker
Because and and then I think maybe to start, it sounds like you and the board arrived at a dollar value. And then and then maybe backfill projects to kind of fit within that. I don't know, maybe take me through how you get at that 165 million and kind of is it built up? Or do you start with that number and then kind of work down from there?
00:19:34
Speaker
Yeah, and it's kind of a little bit of both. It's kind of a meeting in the middle. So I'll take you back to 2019. twenty nineteen We had a long range facility planning committee that was going that was then Superintendent Donna Koloski.
00:19:46
Speaker
They were just about ready to wrap up their work when COVID hit in 2020. And it really put that whole long range facility planning process on hold. Fast forward to 2022, when I was hired ah in July, one of the board's first priorities for me was to restart the long range facility planning process and come forward with um a plan for our school district. And so we did the demographics, the demographic studies.
00:20:13
Speaker
We did two of them instead of one, ah just knowing the volatility of student enrollment across the region right now. um And then we assembled over 30 community members. Some were from the previous long range facility planning team.
00:20:28
Speaker
Some of them were new members to the team. and we hired an outside firm who facilitated the process. Myself and our executive director of finance and operations and Brandy Fox, our owner representative, we were kind of on the outside providing information to the group, but not part of that group necessarily, though we attended every meeting.
00:20:49
Speaker
um That group then is the one that really started to conceptualize what were the big projects that we really wanted to do, or that the community, I should say, wanted to do. And that's how they really started to land on, you know, we're really thinking that the elementary school is is a place where let's put cap tech dollars into that.
00:21:09
Speaker
We redid the boilers last summer. We're going to repaint the facilities this summer. We did new carpet last summer so we can do small cap projects with our cap tech levy. But that was really the group that said, you know,
00:21:22
Speaker
If we're going to do anything with the elementaries, we really need to find out whether or not we need three or four. And so I headed out on the the trail and had some really exciting community meetings, we shall say. and it was really to bring forward the idea that if we reduce by one elementary school, there's about $800,000 worth of savings ah just on the overhead side each year.
00:21:45
Speaker
It was clear the community said, nope, the four schools and the neighborhoods is what we want. So I went back to the team and then they that long range facility plan came together and was presented to the board in the package of saying, we need to focus on the middle school and finish that project.
00:22:03
Speaker
Then we need to do some upgrades in the in the high school. We don't know what those are exactly. That was the group that contemplated the the covered stadium and then took that off. And so then that then they handed it off to the board and the board hand contemplated and then handed it back to me and said, okay,
00:22:20
Speaker
Now you need to go out and figure out how much is this going to cost and what are the real projects. And so we then created teams at each school, mainly the middle school and high school.
00:22:31
Speaker
These were parents, students, faculty members, administrators. And then we also brought along architects at that point. So we had Mithun down at the middle school and we had Malam up here at the high school and we hired them to facilitate that process.
00:22:47
Speaker
And that's where they got to at the high school over 50 some odd projects. And then it had to be, well, we've got to whittle that down because we can't do 50. Meanwhile, we started talking about what's the reasonable amount that we could really think that we could go to the community with.
00:23:03
Speaker
And, you know, I am very honest about this and that is that this is a tax increase. um And I can talk a little bit more about that. You probably have some questions, but I do, you know, what do we want from that tax increase? What do we think is a threshold? And that's where the conversations really started to be of, we've got to get clear on our priorities of these 53.
00:23:24
Speaker
And that's how we kind of landed on the the eight, because when you kind of put that together with what a second half of a middle school would cost, um you know kind of working those two things together even though those groups were working in isolation the through line was brandy fox and myself and matt sullivan and tony coon who were participating and then we kind of formed a ah district group to bring to the board you know here are the options and we worked with piper sandler there are bond organ they do all of our bond sales and they helped us create models
00:23:57
Speaker
What would $180 million dollars bond package look like? What would $160 million? dollars What would $120 million? dollars um And they did presentations to the board to really help them to see, gosh, you know if it's 55 cents per thousand, that might be too much, or 25 cents doesn't seem right. So they helped to really create models um that helped to land on that 165 million.
00:24:23
Speaker
And the board struggled. you know, they really struggled between 150 to 165 as the top. And really it came down to ah desire of that that performance space at the middle school um with using mass timber instead of just a concrete and steel build, um really thinking about preparing the building for solar down the road. We won't have it solar or We won't have solar panels on it. We can go for grants on that, but it'll be solar ready.
00:24:55
Speaker
So wanting to make sure that the building um was something that was adaptable as well. So that's how we kind of landed there. But probe more. I'm probably leaving out 10 steps because there's so much that goes into it.
00:25:08
Speaker
No, and and I appreciate that. Yeah, that's that's crazy. I mean, there's that's a huge amount of work, I imagine, to get even to get those options to present the board. um it i was thinking about that last night driving home. i was just kind of thinking about the hours that you know I've put into the bond and I think I'm probably glad that I was a bit naive coming into it as a new superintendent because to go from where we were to where we are now, just because we didn't have the long range facility plan already in place, you know, that added another 18 months to this whole process. So, you know, it's been a long run, but I'm proud that there were a lot of voices involved. And this wasn't something that, you know, myself and others just hatched and said, this is what we need. know, This is a reflection of what the community um feels like they want for their schools.
00:25:58
Speaker
Well, no, that that's great. I mean, i I had no idea that was the process. So thanks for spending some time elaborating on that. I'm curious. So at the point where the board makes a decision on this, how many different choices did they have? Yeah.
00:26:13
Speaker
you Or were there three to five? I'm just kind of curious, that you know, what was the the primary decision factor for the board in terms of moving forward with this particular bond package versus what other options they had?
00:26:26
Speaker
um What the board wanted all along the way was regular updates. And so it was less about coming at the end and saying, here are four or five different options.
00:26:37
Speaker
It was more iterative and in nature. And so the team was bringing them updates, whether or not it was from Brandy and the architects or myself, so that they could shape it along the way and give us feedback to send us in different directions.
00:26:52
Speaker
So for instance, the mass timber piece, one of the directors, Director Glowitz, that was a piece he brought to the board early on saying, you know, I think that this represent the ethos of our community and really thinking about the sustainability side of this. And they had lots of conversation. And when that became kind of a priority, then that was kind of worked in with sustainability. And so that's just one of many examples where the board kind of gave some shaping to it along the way so that we didn't have to come and say, hey, here you go.
00:27:24
Speaker
we've done all this work with these people and now five people are going to choose between three. it was more of we're doing all this work along the way. Here's what we're hearing. Sometimes the principals came to to provide you know some input. Sometimes it was students and the parents on the committee just so the board was what wasn't left with that big decision at the end. It was more of, yeah, we've arrived at this because we've thought about it all the way through.
High School Projects and Tax Impacts
00:27:50
Speaker
So at the point the the board approved the bond, it was everyone was very familiar and and was actively a part of that product. All right, that's helpful. And two board members participated on the long-range facility plan. that That was that kind of 2022 plan.
00:28:06
Speaker
when I started. So Director Glowitz and Director Lurie both served on that as participating members. And so um they were part of that original process. Board members did not serve on those smaller school teams that then started to do those other components, but that's why we then came to the board to provide updates.
00:28:26
Speaker
Okay, got it. with Thanks. That's super helpful. So I guess other questions that come to mind as I'm thinking about, you know, are there projects that got left out that were critical to have, in your opinion, or that might get addressed later on? I mean, obviously, you mentioned the elementary schools.
00:28:44
Speaker
And there's funding for studying on what to do with those. But are there any projects that didn't make the cut that are important that, you know, that that might get addressed in a later. But the high school, you know, we're going to do some work to the 200 and 300 hallways, but that leaves the 100 and 400 that we won't have done as much work on.
00:29:02
Speaker
It was interesting. One of the science teachers who sat on the high school committee kind of came into the projects, you know, really representing the science department down that 100 hallway at the high school. That's um kind of to the south of the building.
00:29:17
Speaker
And ah by the end, she was saying, wow, I had no idea what the other needs and impacts and limitations were to teaching and learning. I completely see why we are more than,
00:29:28
Speaker
um we're you know We're more than set for what we need to do right now. I think we need to prioritize these other things. And so, you know, it was things we left off, but it was also things we left off as intentionally as we put things on based on what we really thought were the needs as the groups listened to those. And sure, i mean, we could talk about.
00:29:51
Speaker
you know, that covered area over the stadium. We could talk about another auxiliary gym. We could talk about, um you know, the 400 hallway, which, you know, have greater connectivity down that back kind of north-south portion of the building.
00:30:06
Speaker
But, you know, those were all things that it was decided that these were the more important projects. The life safety stuff, those kind of You know, we've been talking about the elevator at the administration building. And while it's not the most exciting thing, making sure that that's accessible, the HVAC system and the fire sprinkler at the high school. I really think that's going to change the dynamic for our learners. So they're not doing so, you know, some of them rose because they're just needed to happen. And certainly then others fell off.
00:30:37
Speaker
Well, that yeah that's helpful. Thank you. And next, you touched on how much this is going to cost. And there's been a lot of back and forth on social media. um I was driving down Islandcrest and I saw...
00:30:52
Speaker
A 40% tax increase sign right next to a 7% tax increase sign. And so i i did I did talk with Mike Ciro and I think I ah understand a little better now where the numbers are coming from, but I do definitely want to talk with you.
00:31:04
Speaker
I guess my first question is, what is the actual cost, you know the out-of-pocket cost from this bond for your average family at Mercer Island? What does that look like just to start?
00:31:15
Speaker
They're great questions. I had a community member email the other day and really asking, you know, I see 7% or I see 40%. What is, you know, and and I've done just what you've already done and referred them back to the organizations that are supporting those signs. For me, i haven't looked at it in terms of those numbers. What we've what we've been trying to message are a few different ways you can look at it. And so to get to your question, right now, a $2.2 million dollars home is about the average home on Mercer Island. A $2.2 million dollars home, if the bonds were sold all at once, let's say the bond passes and this summer we sell them all at once, then taxes on a $2.2 million dollars home would go up north just north of $1,200. They would just go up
00:32:05
Speaker
Another way to look at it, because people have varying you know costs or their values of their homes is to say, OK, why don't we just use a million dollars? And what are some ways we can look at that on a million dollar home? It's 45 cents per thousand.
00:32:19
Speaker
And so it's thirty eight dollars a month or four hundred and fifty dollars a year. And then, you know, if you have a three million dollar home, you can just kind of do the math off of that. um And so that's why i I, again, just want to reiterate for your listeners that I have not You know, I would never want us to try to contend that this is not a tax increase.
00:32:40
Speaker
And I've had some who've asked, you know, well, what about the other bonds? We're still paying on bonds. Right. And that's true. From 2014, sold those bonds. In 2014, we sold half the the bonds in 2014.
00:32:53
Speaker
We sold the other half 2015, and they were bonds. So and that existing debt on that twenty fourteen bond vote ah Will have been paid off. And so what Piper Sandler helped school districts with, and this is what they did for us, is to say, you know, to to keep taxes from spiking and and bouncing on people, they try to smooth it out over time. And so you wind up paying less on your current debt.
00:33:25
Speaker
and more to finalize the previous debt. And so then as that debt falls off, you just kind of maintain a flat a flatter tax rate. It's never perfectly flat because there's always um you know you're all kinds of variables, but those are some ways that we've kind of looked at it. And and I think we have to remember that There are really three types of there are three parts of your tax bill that make up Mercer Island School District. One is the the bonds. Two is the enrichment programs and operations levy. And three is the cap tech levy.
00:34:01
Speaker
And so it's really those three things that we're always thinking about and trying to monitor, you know, when when are we running different elections and and state law governs the EP&O and CAPTEC levy.
00:34:15
Speaker
So, for instance, the EP&O levy next February will come due. um for ah an election on that of whether or not to sustain that, um drop it or or raise it. And that's a whole other conversation that I haven't even thought it thought much about because I've been so focused on this.
Future Financial Planning and School Funding
00:34:31
Speaker
But the other part of your tax bill that's in education is the state. And, you know, there's a big chunk of your of that pie chart that's going to the state. That was part of that McCleary swap back in 2018. That's really the one of the drivers for why we're in the the financial funding mess that we're in as a state right now because the state agreed to take over more and require the local to ask for less but since we're not getting funded by the state and they're not really fun fully funding education those local dollars are more important than ever
00:35:08
Speaker
Yeah. and just And just so for those who aren't familiar with the McCleary decision, essentially what's happening, as I understand it, is the state is round tripping the dollars, right? So instead, it used to be that school dollars would stay on Mercer Island.
00:35:21
Speaker
And now those those the state portion the school dollars goes to the state. And then they it goes into the general education fund. And then the state brings some money back to Mercer Island, but it's less than what we would have otherwise had. Is that generally correct? That is absolutely correct.
00:35:38
Speaker
Okay. yeah And so that the net effect is that we're operating with less cash. Correct. So in in real dollars, our EP&O levy, when we're collecting right now at 12 million, if you took what we used to collect and put it into today's dollars, um you know we have about a $6 million dollars delta between what we used to collect and what we do today on the EP&O levy.
00:36:02
Speaker
which all that money stays right here on Mercer Island. And it would all work if the state funding model actually met our needs. But we're $2.1 million dollars just on our materials, supplies and operating costs underwater.
00:36:16
Speaker
We're $3.9 million dollars underwater on special education. And I had some community members kind of criticize that I brought that up in a in a recent letter. And my point is not because special ed is is causing the the challenge. That's not it at all.
00:36:32
Speaker
The state is causing the challenge because they're not fully funding special ed, who are our students who in many ways need the support the most. And so we do use our levy dollars and we will always use our levy dollars to make sure we take care of students. It should to be clear that do the levy dollars stay on Mercer Island?
00:36:49
Speaker
They do. They do. And the cap, so the cap tech and this EP and O levy, those dollars stay right here. Yep. I know you said you haven't thought a lot about it, but I mean, you've spent a lot of time on budget. Yep. um Your recent email letter came out with some tough choices you've had to made, which I commend you for that, by the way. i thought that was a very well-written email and you've obviously put a lot of thought into that. um But one the questions want to ask you is sort of what's coming down the pipe in terms of other tax increases related to school. And I have to imagine that that what's going through your head now is the levy is going to have to go up to meet budget shortfall.
00:37:25
Speaker
Is that, yeah I don't want to put you too much on the spot, but you I appreciate the question. I'm assuming that the levy dollar, the levy taxes are going to go up. to help meet some of the the shortfall.
00:37:36
Speaker
Is that an accurate? Yes, and there's a caveat to that. So the legislature put a levy cap on us and essentially we're one of the few districts and it's because of our tax base, we're considered a rich district.
00:37:52
Speaker
So because of that, we collect on a per student basis. We don't collect on the EP&O levy, we don't collect on your home values. um So we get just over $3,100 per student. It started out at $2,500. And then through inflation, we're up to $3,100.
00:38:11
Speaker
okay So right now, because we told the voters back in 2022,
00:38:17
Speaker
that we would not collect more than 12 million, we're capped at 12 million. We technically could be getting like 12.5 million. So some people would say, okay, we're not extending that.
00:38:30
Speaker
we're not There's 500,000 we're not putting onto taxpayers. And others might say, you're leaving money on the table. However you look at it, if the legislature doesn't do anything to the law, Ben, even a year from now, we're only going to be able to ask for like 750,000 more than we're already asking.
00:38:45
Speaker
And that spread across all 22 billion dollars ah in the tax base. So, you know, it would be a pretty small increase. Now, if the legislature and there's some talk of it in Olympia.
00:38:57
Speaker
I don't know how serious they'll get when push comes to shove at the end of April when their session ends. There's talk that they might lift that cap or raise that cap. And if they do do that, then we would need to have some really honest conversations with the community. it would be right back to here's what we think we need.
00:39:17
Speaker
to fill these budget deficits and still maintain the programming that we want for Mercer Island School District. So, yeah, I appreciate you answering that. and i And again, that's that wasn't the focus of today's discussion. But i I do think looking at the spending decision today in the context of what's to come in the next five or 10 years is a reasonable you know
Improving Educational Outcomes through Bond Measure
00:39:38
Speaker
thought process. sure And, you know the other question I had,
00:39:41
Speaker
Could you paint the picture a bit on what future bonds might look like and when? So you mentioned like in 2029, in 2030, we pay off our debt, which is great.
00:39:52
Speaker
That goes away. I'm assuming that at that point would be a ah good time to consider another bond. And I know you guys are going to study that. I'm not going to put you on the spot on what that might be. But can you just sort of paint the picture of what the future might look like? i think And I think you might have done it earlier when you said the goal is to kind of keep things consistent.
00:40:09
Speaker
Yeah. In terms of the tax rate. And so is that is that sort of the answer to the question is is to kind of plan on another one during that time frame? I think that's, you know, I think that that is reasonable to kind of think in that way. um Obviously, that'll be and another board and and maybe I'll still be superintendent or or whatnot to to really contemplate that. But, you know, without a massive swing in voter sentiment to say, OK, yes, let's get an elementary done or let's do this or that.
00:40:39
Speaker
um You know, I think now we're kind of setting up a cadence for what the community might be able to expect. But that's all you know that that that, as you said, is is speculation. And so, you know, i think the idea is let's put some cap tech dollars and put it into our three elementary schools that are older, really extend the life of those. And every kid goes to the middle school and every kid goes to the high school.
00:41:06
Speaker
So if we're going to invest some money now because we need to do some updates, let's put it into those facilities that all kids are going to benefit from. And then, you know, we'll continue to make sure that learning doesn't get compromised in our elementary schools.
00:41:21
Speaker
They may not be the same schools you see in Lake Washington or Issaquah or Bellevue if you drive around some of the newer builds. But we're going to make smart decisions about what's best for the whole K-12 system, not just one grade level.
00:41:33
Speaker
i I guess as I talk to people, the concern there's concern amongst the community about education outcomes, whether you know whether they're improving or they're getting worse. you know There's a lot of discussion, let's say. you know I won't take a side one way or the other. But ah the question I have for you is for those parents out there who are frustrated or concerned about the quality of education that kids are getting on Mercer Island, how does this bond help with education
Construction Challenges and Financial Responsibility
00:42:00
Speaker
outcomes?
00:42:00
Speaker
um Great question. I think there's a couple things there. I would say first off, you know, when we're talking about how has the district continued to improve, it was around 2013 that I arrived in the district office.
00:42:13
Speaker
um At that point, I think we had about 550 total tests taken for AP, for example. This year, I think we're going to have more than 1600 tests taken by our students.
00:42:26
Speaker
And we have far more students who are taking AP classes than even who will to take the tests. And so I think investing in and and we've got advanced courses, we've got advanced radio broadcasting, we're bringing online advanced video production.
00:42:43
Speaker
um As we start to try to you know see where students are, we need to continue to elevate. And and that's where some of that investment goes into. um As you look in the core in the corridor of the the school district,
00:42:56
Speaker
I think we need to continue to sell our high school and sell our our product. And you do that by extending out to a wider audience. And so we're providing better performances.
00:43:09
Speaker
We're providing better experiences. I think we're going to continue to see families wanting to move here. because they're seeing us not just regionally, but they're seeing us across the state, they're seeing us across the country. And our goal is to continue to be that that district that people look look to.
00:43:25
Speaker
um you know When they think Northern California, they think Palo Alto. When they think um Portland, they think Lake Oswego. And when they think of Seattle, they think of Mercer Island. And we want to maintain that and continue to push that forward. I think at the middle school, getting everyone into the same building and not having this large, sprawling campus where kids are coming and going, allowing that community to feel more like a middle school community by by finishing that project and allowing for
00:43:56
Speaker
you know, more collaborative space. I talked to another group yesterday about, you know, the the reading, writing, math, science, social studies absolutely maintains the backbone of what we're trying to accomplish.
00:44:08
Speaker
um But it's in the context of creativity, communication, collaboration, character, citizenship. Those things are important too. And I think if we can design spaces that can promote that as well,
00:44:20
Speaker
Then we're creating better people who also have a strong foundation and education. So those are some things that I think about when i'm when I'm thinking about school design. And, you know, that goes back to Northwood. I was part of the projects there and, you know, really getting a chance to think about what can we do for students.
00:44:37
Speaker
Thanks. That's very helpful. I'm curious, you you brought up Northwood. another Another critique of this bond package that I've heard is that you know it's it's Cadillac design or ah you know it's over-designed.
00:44:53
Speaker
Can you just touch on that a little bit? how how do you You mentioned earlier the the mass timber versus concrete and steel. How does the district look at the fit and finish of the product versus the cost? Yeah, I think at the middle school, it's going to be about trying to make sure we create one building and not the old wing and the new wing. And that will be a challenge for the the architects if this bond passes.
00:45:17
Speaker
And so, you know, trying to create a cohesive um school. I don't hear that same criticism down at the middle school as much. And so it's really trying to think about the communities who are around the school.
00:45:31
Speaker
who own homes around there and what does the design look like? And then, you know, also making sure that it certainly has a new and modern look, but doesn't have to be over the top, if you will. And the high school project is, you know, we're working with with what we have. You know, we're not tearing down and rebuilding. And so it's a totally different kind of ah ah project in the sense of really, you know, we're we're not going to be able to do what you can do when you do a teardown. but No, that's fair.
00:46:01
Speaker
We're kind of getting ah getting to the end of time here, so I appreciate you as sticking with me. i the the The last question that I've got as I think about this, or one of last, is how do you think about construction inflation?
00:46:13
Speaker
you know Over the last four or five years, anybody that's involved with construction or development, it's crazy. um It's just been out of control. Are you confident that the projects are going to be able to delivered within the the the budget that you've come up with and and has the architect and design teams spent a lot of time thinking about the the impact of inflation to the extent that they can forecast that?
00:46:38
Speaker
Yes. So I'll answer that in two ways. you know One is all the information we were using up until now and and the $165 million is budgeted to where we think the midpoint of construction will be. So somewhere in that 2027 range.
00:46:55
Speaker
So there's a cost of what it would have been if we built it in 2024 when you know we're making our for fire final proposals. Then we did an escalation to midpoint of instruction. And so that's that 165 million takes into account that part portion of the inflation.
00:47:12
Speaker
What I can't control and that seems new completely are tariffs and and other things that are happening. So I, you know, that is way kind of beyond my scope of really. and very The inflation environment's been so volatile that it's right.
00:47:28
Speaker
It's almost impossible for anyone to know what the future is going to hold. But I will say that we, that's why we also sell these. We don't sell the bonds all at once. um One is the auditors don't like seeing public entities sitting on large pools of money.
00:47:42
Speaker
But two, it's also to make sure that as we're going along, we're maintaining and we're staying within that budget. Because if we have to tack in a different direction because something wild happens, then we can scale projects and we haven't over committed ourselves.
00:47:56
Speaker
um And so that's part of the work that Brandy Fox does um and and Piper Sandler and Matt Sullivan, our executive director of finance, of really monitoring that constantly because it's not a static thing. It's very dynamic. But, you know, the one thing that Brandy has done consistently for our district and her first project was actually the high school in 1995.
00:48:17
Speaker
um That was her first project with the district. But, you know, you know We've been on time and on budget in all of them. And I think that's part of you know the conservative nature that she approaches things with um based on her track record.
00:48:30
Speaker
Well, that was going to be my last question, just sort of our our track record of delivering yeah on time and on budget. And so you've you've addressed that. So that's great. I mean, we don't have luxury. I hear some of these other public entities where you know they have you know ah $100 million, $100 billion dollar overrun or something. We don't have that luxury. You know, the dollar is
Community Voting and Closing Remarks
00:48:49
Speaker
the dollar. That's what the community has has allotted. And there's no such thing as, you know, going over and and whatnot. So we we can't we can't miss in that same way that you hear other entities. Because at the end of the day, we're a small community. And that's right part of what makes this place great. so But ah things are limited for sure.
00:49:10
Speaker
Well, I'll give you the final words. ah Anything that you want to iterate that I haven't asked you about or that you feel is important for people to consider as they as they come away from this discussion?
00:49:22
Speaker
You know, i the first thing is i just as citizens, you know, i always remind people, you know, get out there and vote. And I hope that this podcast and other presentations are giving people the information that they need to say, yeah, this makes sense or no, this doesn't make sense. And so however people vote, I just hope they feel informed. And that's that's been my whole goal.
00:49:48
Speaker
I don't want people to feel like they were misled or anything. Hey, here are the facts. And you know the community now gets to make the decision because at the end of the day, i don't own the I don't own these buildings, the community owns them.
00:50:01
Speaker
And there's something that they're reflection of this. and And if this is the right project, the community will say so. And if this is not the right project, the community will say so. And that's that's part of the beauty of of the process.
00:50:13
Speaker
Well, very good. Well, yep. let's Let's get everyone out there to vote. um Dr. Rundle, thank you very much for taking time to to go through and answer these questions. And thanks again for everything you're doing for our kids. We really appreciate it You're very welcome. Thank you, Ben.
00:50:26
Speaker
All right. Bye-bye.