During its meeting last week, the Burlington, Vermont School Board heard the latest cost estimates for building a new high school and technical center.
The current high school and technical center buildings are not in use and must be dismantled due to high levels of PCB’s.
The project cost estimate is $196.9 million. Bonding is capped at $165 million, and after current fundraising and grants are considered there is a funding gap of approximately $7 million.
District Superintendent Tom Flanagan told the board that cost estimates have increased in some areas and decreased in others.
“At this point we are still looking at and committed to being at or under the $165 million bond amount.”
District Executive Director of Finance Nathan Lavery requested board approval for $1.3 million to continue the design and development phase prior to a bond vote in order to keep the project on schedule.
“We’re going to have architects, engineers and so forth working on the design in anticipation of a positive bond vote," said Lavery. "This authorization from the board would allow us to continue to do that work. We believe it is essential in order to keep the project on schedule.”
North District Commissioner Kendra Sowers wanted clarity on the impact of the pre-bond request on the total bond.
“Is it added already into the total bond? We’re just having to spend it ahead of time?”
“Essentially yes," replied Lavery. "This is not increasing the cost of the project. You can think of this as just shifting those costs earlier.”
A motion was made and approved to authorize payment for the work. But some board members like Ward 3 Commissioner Polly Vanderputten were concerned about the impact on Burlington taxpayers.
“As the numbers become clearer to us, the actual numbers, it would be great to have some real clarity about what this means for taxpayers. To break it down I think is very helpful to hear that number for the value of the house, or income based and to like have real clarity.”
On Monday evening, school officials appeared before the Burlington City Council’s Board of Finance to provide a project update. Superintendent Flanagan explained adjustments intended to lower costs.
“We have reduced the Burlington Technical Center design program and footprint and moved the majority of that planned space and program to the airport," explained Flanagan. "We have a $10 million grant that was earmarked from Senator Leahy to break that project. That helps reduce the original cost which was $210 million for this project. And also the environmental work came back underbudget.”
A memoto the Board of Finance outlines tax estimates based on a 3.5 percent interest rate over 20 years for a $165 million bond. It shows a 15.67 percent tax rate increase that amounts to an $805 annual property tax increase on a $370,000 home or $67 per month. Lavery noted the estimates are based on a number of variables.
“The $165 million bond amount essentially assumes that we are able to bring no new revenues to the project what-so-ever. We actually think that is not likely to be an accurate assumption," said Lavery. "There is a lot here that is still subject to change but we think that these are fair and accurate representations of our tax implications based on the position that we’re in today.”
The Burlington School Board is scheduled to meet at 6 p.m. Wednesday to consider action to approve the bond language.
