The Salem Community Foundation Board of Directors voted unanimously to award the Salem School District with a gift of $10 million toward the bond issue for the construction of a new K-8 school building that voters will decide the fate of this November. Pictured from left are Salem Community Foundation Board of Directors Members George Hayes, Shane Franks and Debbie McCulloch, Salem Community Foundation Board of Directors Vice President Robert McCulloch, Board of Directors Members Carolyn Caldwell and Tony Maroni, Board of Education President Dianna Barley, School Treasurer Mike Douglas, Board of Education Vice President Carol Hrvatin, Board of Directors Members Steve Bailey and Audrey Null, Board of Education Member Britanny Maniscalco, Salem Community Foundation Board of Directors President John Tonti, Board of Directors Member Joe Sedzmak, Board of Education Member Ted Bricker and Superintendent Sean Kirkland. (Photo by Morgan Ahart)

SALEM — The Salem City School District has been presented with a massive gift by the Salem Community Foundation.

“I am honored and thrilled to share the incredible news of the Salem Community Foundation’s $10 million contribution to support the K-8 building bond issue. This momentous gift exemplifies the power of collaboration and community support in transforming our educational facilities for the benefit of our students and educators,” said Superintendent Sean Kirkland.

Announced in the school board’s meeting Monday, the Salem Community Foundation is donating $10 million for the construction of the proposed new K-8 school. This gift would be applied to the 3.48 mill, 37-year property tax levy that the district is seeking in the upcoming November election. Kirkland described the donation as “unprecedented,” noting that it represented the largest donation for a facilities commission project ever made in the state of Ohio, with the next largest example being roughly $100,000.

“This unprecedented gift from the Salem Community Foundation’s Board of Directors marks a watershed moment for Salem City Schools, as it demonstrates the foundation’s unwavering commitment to the advancement of education and the prosperity of the community,” said Kirkland.

Kirkland said the funds, in combination with the bond issue, would serve as a foundation to transform the district’s K-8 facilities for the better, allowing for expansion and modernization to key areas of its infrastructure, including updated technology and resources for both teachers and students.

“The impact of this gift cannot be overstated. It is an investment in the future of our students and the prosperity of our entire community. We are immensely grateful for the foundation’s support, and we look forward to working together to shape a brighter future for our students,” said Kirkland.

Kirkland thanked all the members of the foundation’s board of directors in attendance, as well as the remaining directors, members, donors and organizers that could not be in attendance.

Salem Community Foundation Board of Directors President John Tonti said that the gift would be provided through the Ruth Harkins McKeown Fund which was endowed in 1977 for the creation of a recreation center and education, noting that roughly 23 years ago $10 million from the McKeown fund was similarly donated for the foundation of the Salem Community Center.

“I will tell you that it was a lot easier doing the community center and signing that paperwork than what we went through here, but we got through it, and I think it’s going to be a fantastic situation,” said Tonti.

Tonti also noted the foundation’s longstanding emphasis on supporting education, including the 1990 purchase of the 67-acre property Whinnery farm in the city’s southeast corner on which the new building is to be located.

According to a press release from the foundation, the Salem Community Foundation Board of Directors met in June after the levy failed in the May primary election to discuss what they may be able to provide. With 100% approval from the board of directors, they felt it was appropriate to help the school district pass the levy by presenting them with the $10 million gift.

“The Salem Community Foundation’s financial support of the levy is an acknowledgment of the need for the new facility and to take the opportunity to have the majority of the project paid for by the State of Ohio. The Foundation’s donation will further reduce the financial obligation of the school district’s taxpayers,” said Salem Community Foundation Vice President Robert McCulloch.

The levy seeks to raise $22.5 million for the 33% local portion of the buildings estimated $59 million total cost; $19.5 million for the estimated costs of construction and $3 million for necessary local funding initiatives and funding contingencies. The remaining 67% of the overall costs would be funded through an award from the Ohio Facilities Construction Commission (OFCC).

The donated funds would be distributed in installments of $1,000,000 each year no later than Dec. 1, beginning in 2027 and continuing through 2036, to pay a portion of the total principle of the bond taken out for the construction. However, the receipt of these funds remains contingent on the passage of the levy. Douglas explained that the bond issue would still have to be approved by voters because the state requires a project be funded in full before it can be accepted and state funding can be received, and the yearly payments from the community foundation will not begin until 2027.

However, Douglas said that with the foundation’s gift only 18%, or $12.5 million, of the total cost would need to be drawn from property tax revenue. Douglas said that the actual amount paid by private citizens would be closer to 13% after the gift as 5% of the amount funded through tax revenue would come from the district as well as from commercial, industrial and public utility properties. As a result, the actual amount collected through the levy would decrease significantly.

Prior to the receipt of the gift from the foundation, had the levy passed Salem residents would see an approximate increase of $121 per year or $83 per year for those age 65 and older that qualify for the Homestead Exemption, for each $100,000 valuation of the property; meaning a taxpayer owning a home valued at $200,000 would be twice as much. However, Douglas said that with the receipt of the gift, and the overall decrease in local tax liability it provides, that figure would decrease significantly. While residents would see a decrease in the amount that would be collected throughout the life of the levy, with the estimated necessary millage decreasing to 2.75 for years one through 10, that figure would decrease even further during years 11 through 37 as the required millage decreased further still to 2.2.

In practice this would result in the average taxpayer paying $96.25 annually or $8.02 monthly, and those that qualify for the homestead exemption paying $72.19 annually or $6.02 monthly for years one through 10; and the average taxpayer paying $77 annually or $6.42 monthly, and those that qualify for the homestead exemption paying $57.75 annually or $4.81 monthly, for years 11 through 37.

The district previously attempted unsuccessfully to get the levy passed in the May 2 special election. At that time the levy failed with a vote of 907 (44.07%) for and 1,151 (55.93%) against. The board approved a resolution of necessity to present the question of the levy to the voters again in its June meeting and passed a resolution in Monday’s meeting to officially place the levy on the ballot for a second time in November. Should the district be unable to pass the levy for a second time in addition to losing the $10 million gift from the foundation, it will become a lapse district, losing the offer of 67% of the building expenses and moving to the back of the line for future OFCC funding, with no guarantees that when the time comes again to receive a funding offer it will be as favorable.

The board of education will meet next at 7 p.m. on Aug. 14.