Allenstown Alt. - Bond Proposal for New School Part 2

State Won't Award the Grant Until July 2021 . . . Maybe

Dateline: Jan. 18, 2021

On January 14th, the School Board held a public hearing in the acoustically challenged ARD school gym. The topic was "a proposed bond issue in the amount of up to $12,999,824 for the construction of a new school."

School Board Chair Kris Raymond reviewed the history of the research and investigations that led them to the conclusion that the only solution was to build a new kindergarten to 8th grade school. Those details can be found in the preceding story, Bond Proposal for New School.

One disappointing aspect of this meeting, aside from the price tag for the new school, was the fact that only about 21 people attended in person and a handful via the Zoom video conference. Of that number about 2/3 were from the School Board or the Budget Committee or Town Hall. This makes one think, were the residents that disinterested in the proposal, did they just not know this important meeting was taking place, or was it something else? With millions of dollars in the balance, why did so few resident taxpayers attend?

At this hearing, this reporter asked a boatload of pertinent questions, some of which were answered in the details of the slide presentation (see link to the right). Note that the drawing of land next to Casella's property is not what they plan to purchase.

Answers to questions:

Q. How much of a negative impact will this bond have on the town's efforts to encourage economic development?
A. Chair Kris Raymond felt that the expenditure would have a positive impact.
Q. What kind of school is being proposed, K-8 or less?
A. It will be K-8 and replace AES and ARD.
Q. Given the ongoing negative effects of the virus pandemic on schools, jobs, and personal finances, is there a downward trend for public school enrollment that should caution us to postpone new construction?
A. Budget Committee members Keith Klawes and Melaine Boisvert said the new school will have a positive influence on the students and teaching staff as well as on people and businesses moving into town.
In the bond hearing handout, the AES and ARD population has been 367 in 2017, 374 in 2018, 367 in 2019, and 368 in 2020, which has been pretty flat.
Q. What is the final proposed cost? The estimate in October 2020 was $33.8 million.
A. The current estimated cost is $32.5 million with $19.5 million to come from the state grant, leaving $13 million for the taxpayers to fund.
Q. Is it true that the state has not yet approved the grant?
A. True. The state DOE will not announce this year's grant recipients until July 2021. School warrant article #1 includes the caveat that the bond request is null and void if the state does not award the town the $19.5 million grant. School warrant article #2 contains the caveat that, if article #1 passes, then #2 is null and void.
But warrant article #1 says "raise and appropriate the sum of $32,499,560." When and where does that hefty sum come from while we wait to hear from the state?
Q. Does the cost include the needed land or is that an extra cost?
A. The cost of the land ($450,000) is included in the bond.
Q. Where is it to be built and how long will that take?
A. The property shown in the handout is off the market, so the next property of interest is 59 acres at the corner of River Rd. and Dodge Rd. (map 410 lot 12). The land, owned by Rehab Associates of New England, has an assessed value of $160,000 but the asking price is $450,000, which is over $7,600/acre. Warrant article #1 says that the school board has already signed a Purchase and Sale Agreement.
Construction time was estimated as 16-18 months. This property is zoned Industrial so this reporter suggested that they carve out all the land they need and sell the remainder. Dodge Rd. is home to mostly commercial businesses already.
Q. Will the new location require more school busing?
A. Yes. Just about all the students in town would have to be bussed to Dodge Rd.
Q. If approved by the voters, what will be the origination date for the bond and the interest rate?
A. The current municipal bond rate is 1.58% which is very favorable. The warrant articles state that an unspecified amount ($XXXXXX) would also have to be appropriated for the first year's payment on the bond. The exact amount is TBD. When will that have to be paid, before or after we get the bond?
Q. How long will we be stuck with this bond?
A. 20 years.
Q. What will be the annual cost of the bond and how much will that raise the school tax rate?
A. The bond would add up to $2.00/$1,000 to the school tax or $400 more for a $200,000 home. That amount will be added to the school tax every year for 20 years. As with a home mortgage, your monthly payment remains the same for 20 years, so you have to look for ways to increase your income, like getting a higher paying job.
Q. What cost cutting measures will the board take to offset the cost of the bond?
A. Chair Raymond said not much could be cut since so much spending is mandated by state and federal law. Also Pembroke Academy is raising its tuition rate for Allenstown. The projected cost per student is now $20,666/yr. Anyone for school choice?
On the plus side, the new school would operate at an annual savings of about $68,450/yr. The two old schools could then be sold to developers and become taxable property again.
Q. If the school bond warrant article fails, what is the net effect?
A. The school district could re-apply for the grant in 2022 but the project cost could increase. If the second warrant article passes, then the school district could at least buy the land.

What You Can Do

Attend the January 30 Deliberative Smackdown Session and propose whatever budget changes you might come up with.