Muskogee Public Schools has put its planned bond request on hold amid uncertainty about the City of Muskogee's response to three lawsuits it settled last month, which together carry a price tag of $29.25 million plus interest. City leaders still haven't figured out how to pay.
The district had been planning to ask voters for a bond in 2027, but Superintendent Dr. Jarod Mendenhall says the district needs answers before it asks anything of taxpayers, according to News On 6. Mendenhall has floated an April or summer 2027 bond election as the district's new target, though nothing has been finalized.
Lawsuits Dating to 2007 Come Due
The legal fight behind the pause dates back to 2007, when three lawsuits were filed over properties condemned and demolished under the city's nuisance abatement procedures, per Tulsa World. On August 24, the Muskogee City Council approved agreements resolving all three cases, which produced judgments of $6.5 million in the Taff case, $8.5 million in the England case and $14.25 million in the Lacey case, the outlet reports.
Combined, the judgments total $29.25 million, plus applicable interest, according to the same News On 6 report. That's a substantial bill for the city, which is weighing how to pay it, per KTUL.
Three Ways to Pay, None Chosen Yet
City leaders are weighing three primary paths forward: writing a one-time check for the full amount, spreading the cost across property taxes collected over a three-year period, or asking voters to approve a sales tax, KTUL reported. The station reported that these options are under consideration.
If the judgments and interest were fully placed on the city's Sinking Fund, the increase would add about $450 a year in property taxes for every $100,000 of assessed value, an estimate attributed to Kendal Francis in the News On 6 report. Separately, KTUL cited an estimate from the Muskogee County assessor that a property-tax solution could mean a 35 to 40 percent increase in property taxes. The estimates point to a significant potential increase if the city goes that route.
There is no approved property tax increase at this point, per the News On 6 account. The city would not have to decide whether to place the judgment on the Sinking Fund until June 2027, and any additional property taxes, if approved, would begin in October 2027 and remain on the tax rolls for three years. City leaders are exploring financing alternatives and partnerships to reduce the hit before it reaches homeowners, the outlet notes.
What the Bond Money Would Actually Fix
The district's work to identify its needs will continue even with the bond timeline paused, according to KJRH. The district is also seeking community input through a survey.
Potential projects have included roofs, technology, security, school upgrades and renovations, according to KJRH, along with possible rebuilds of Cherokee and Irving elementary schools. Mendenhall has discussed the district's needs. The district is still developing its project list for a future bond proposal.
The Muskogee Phoenix reported that pausing the bond issue gives the district time to listen to district residents and gather information about community concerns.
City-School District Relationship
As the school district weighs a bond and the city considers how to pay the judgments, Mendenhall regularly communicates with city officials and has spoken about the relationship between the city and school district, per News On 6's reporting.
Mendenhall said the district would need to determine how to pursue a bond issue if the cost of the judgments ultimately falls on taxpayers through higher property taxes. He expects the city to decide on its approach within the next few months, though the city's own deadline for a final Sinking Fund decision doesn't arrive until June 2027 — meaning Muskogee families may be waiting a while longer for clarity on both fronts.
