Knoxville CSD Provides Clarity on Facility Plan and Administrative Building Transition

The Knoxville Community School District has released an update to provide clarity on the 2020 general obligation bond issue, projects previously explored for Northstar Elementary, and the decision to relocate the district’s administrative offices. In 2019, the district completed a comprehensive assessment of its buildings and grounds and compiled cost estimates to create a new strategic plan to guide facility improvement projects through 2025. Under the plan, the district would use voter-approved general obligation bonds and statewide sales tax revenue from the Secure an Advanced Vision for Education (SAVE) fund to pay for the work.
The Strategic Plan's priorities were to construct a new middle school for grades 6-8, upgrade the high school's heating, ventilation, and air conditioning (HVAC) system, and add air conditioning at Northstar Elementary. In March 2020, KCSD voters approved a $26.25 million general obligation bond referendum to address these needs.
Using voter-approved bond revenue, HVAC improvements at the high school were completed and a new middle school was built. The district also spent approximately $16,600 on air conditioning units for Northstar as a temporary solution for classrooms.
The district expected to use $12 million in SAVE revenue to complete athletic facility improvements and a series of projects at Northstar, based on 2019 facility assessment estimates. However, unexpected inflation, supply chain issues, and rapidly rising expenses from the COVID-19 pandemic meant the budgeted funds were not enough to cover all the planned work.
“By 2023, inflation made the Northstar projects unfeasible because the district’s SAVE funds would no longer cover the cost to complete the projects,” said Superintendent Cassi Pearson. “The School Board and administration decided to move forward with the athletic facility improvements first, while simultaneously getting an updated assessment and cost estimate just for the needs at Northstar.”
A second assessment completed in 2024 identified more than $22.5 million in deficiencies and needs at Northstar alone. The district assembled an advisory task force the following year to examine multiple options for Northstar. Ultimately, the group recommended building a new elementary school with a longer life expectancy because renovation costs were high and all options would require a general obligation bond due to inflation, supplemented with SAVE revenue. Due to above average inflation rates, updated expense estimates were completed in September 2026. The most recent cost projection is now more than $27 million. Meanwhile, the expected cost to build a new elementary school for grades 2-5 in the Veterans District to replace Northstar is $35.7 million.
The general obligation bond issue on the ballot Tuesday, November 3, would provide up to $15.3 million for the proposed elementary school. The project would also use about $20.4 million in SAVE revenue.
The City of Knoxville has agreed to gift 10 acres to the district for the new school if voters approve the November referendum. The district previously gifted a parcel to the city to build a new City Hall and Public Safety facility.
Referendum information is available at www.knoxvillebond.org where a recording of the Town Talk is also posted.
Administration Building transition
During the design phase of the new middle school, programming needs were identified, including transportation challenges for junior high athletes to get to the former Administration Building’s gymnasium for practices and games. Previously, students walked between the former middle school and the Administration Building.
The School Board and administration discussed the subject at multiple public meetings in the summer and fall of 2020 before approving final design and development plans on November 9, 2020. An analysis showed that downsizing and relocating administrative offices could create operational efficiencies and reduce expenses.
“The previous stand-alone Administration Building occupied a full city block that required lawn care, snow removal, regular maintenance, and custodial services for 6 employees,” said Business Manager, Craig Mobley. “By significantly shrinking the office footprint and relocating it, the district realized annual cost savings beyond the initial cost analysis that showed the sale price exceeded the cost of building.”
The Administration Building, which spanned 16,700 square feet, was sold for $380,000 to the Pierschbacher’s in 2023. This property has been renovated into a Celebration Center and pays commercial taxes on the assessed value of $1.29 million.
Audit found no improper bond spending
In recent years, community members submitted a petition to the Iowa State Auditor's Office, raising concerns about the construction of administrative offices at the new middle school and HVAC work at Northstar related to the 2020 referendum.
The state auditor’s report, issued in May 2024, confirmed that the audit, which included an extensive review period from July 1, 2020, through June 30, 2023, “did not identify any improper disbursements or noncompliance related to the use of the bond proceeds.”
The report stated that only 25 percent of the former Administration Building was being used, and that by relocating administrative offices to the new middle school, KCSD “was able to sell the old building and reduce district costs for maintaining and insuring the old building which was not being used to capacity.”
“The audit specifically highlighted that the decision to move district offices to the new middle school was a cost-saving measure,” Mobley said.
The state auditor's report is available at www.auditor.iowa.gov.