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With uncertainty in the bond markets, it's possible that Blount County might follow the lead of Maryville and postpone construction of a planned new school.

Currently, Blount County Schools is planning to open Prospect Elementary School on Burnett Station Road in time for the 2010-2011 academic year. County Finance Director Dave Bennett said that the Blount County Commission and Board of Education will have to decide whether that's still feasible.

"We need to be very cautious about going into the bond market," Bennett said. "... While it is doable, we've got to be aware it may be more prudent to put it off a year. Maryville has put their (school) off a year."

The city of Maryville has postponed the construction of Coulter Grove Intermediate School for at least a year after it encountered difficulties selling a $25 million bond issue. Bennett said that although current interest rates are attractive, ranging from 1.1 percent variable rate up to a bit more than 5 percent for fixed rates, for issuing bonds, the county has no guarantee it could find a buyer.

"The problem has been that some people have gone out to sell fixed rate long-term debt and haven't been able to sell it," Bennett said. "The credit markets have eased up, and they have eventually sold those bonds, but I'm trying to make people aware. ... The problem is are we going to have a buyer for our debt when we issue new stuff? That's the question."

Currently, the Blount County Commission has not voted to approve any funding for the school. Instead of going through the Blount County Public Building Authority for the new school, the Blount County Board of Education is going to directly hire a construction manager. Once the school is bid out and estimates returned, the County Commission will vote on funding.

Decision by January

The county will have to decide whether to move forward on the project by January, Bennett said.

"We don't want to get committed to a contract and then go out on the bond market and find we can't issue the bonds," he said. "If we move forward, we'll probably go to the bond market first to make sure we have the money."

Blount County Board of Education Chairman Chris Cantrell said he share's Bennett's concerns about the state of the bond market but hopes that the construction of the school will not be postponed.

"Obviously that would be our hope because the overcrowding it would relieve at Porter is a priority," he said.

Director of Schools Alvin Hord said that Porter Elementary School currently enrolls 765 students, which is 115 more than capacity.

"We've got kids outside in portables," he said. "Those kids would have to remain in that situation (if the construction is postponed)."