WHITMAN – Numbers on the Whitman Middle School project have suddenly changed, leaving Committee members questioning why, the Select Board heard on Tuesday, Aug. 22
Town Administrator Mary Beth Carter outlined the financials for the Select Board, noting that the Whitman Middle School project price tag has increased – but the MSBA reimbursement went up by a larger percentage.
The Building Committee met Tuesday, Aug 15 to discuss the most recent updates regarding the project. Another meeting for the Building Committee is slated for Monday, Aug. 28.
“Now it’s getting real, so to speak,” Building Committee Chair Fred Small said “There should be some options on the table for us.”
The whole committee needs to sit down and discuss why the numbers changed and to have the opportunity to seek another option – if one is available, he said.
“I’m glad you are calling another meeting,” said Select Board Chair Dr. Carl Kowalski.
A new school building’s total price tag increased by more than $7 million [$135 million, up from $127 million] – but the town’s portion after the estimated reimbursement from the Massachusetts School Building Authority (MSBA) would be increased by $17 million, with the town getting back $90 million rather than the $72 million previously anticipated – a 26-percent increase.
The Building Committee had also voted on Aug. 15 to send all the information on the schematic design phase of the project to MSBA. The final step before requesting approval from voters at special Town Meeting in October and a subsequent ballot vote. The schematic deadline was Aug. 31, and the Monday meeting should also look at options, including if an extension of that deadline could be granted.
“The numbers we were given for the new project originally were [about] $67 million to $72-something million.” Small said. “When we saw the $89 million figure, it was quite startling.”
He said the new numbers had not been received until very late before the Aug. 15 meeting, giving committee members little time to digest the information and have questions prepared.
“I ran some numbers and the impact of this new cost to taxpayers, is approximately $1,494.01 for the first year of debt,” Carter said. “This figure is based on a level-principal, 30-year debt schedule calculated at the district’s anticipated borrowing rate of 5.5 percent.”
That impact amount was based on an average single-family home with a valuation of $420,530 as of today. Debt payments based on a level principal debt schedule decrease each year over the 30-year term, according to Carter, with an average debt payment being $1,017.59.
“The difference in using a level debt service schedule as opposed to a level principal debt service schedule saves the town over $19 million on this new construction borrowing options,” she said. “That would be the option that I would say that I would want the town to use.”
She said staggering the borrowing over two or three years, based on projected cash flow, the interest rate used in the calculation would be different, and the impact to taxpayers would also be different.
A base repair option, for example, would be estimated to cost $60,358,000 with the impact to taxpayers on an average single-family house would be about $1,001.96 in the first year of debt. The borrowing rate of 5.5 percent and a 30-year schedule decreasing each year, were the same as the first option.
The average payment over the 30 years on a base repair option would be $682.38.
“The difference in using a level debt service schedule instead of a level principal service debt schedule for a repair option saves the town over $12 million in interest,” she said. Noting in this scenario, the level principal would be the best way to finance it.
“This is an estimate based on the district borrowing the whole amount in one bond issue,” Carter said.
The base repair cost is based on the useful life and would not be considered a renovation, but a repair of the building.
“The question is what would the useful life be, and you are allowed to expend your debt schedule based on the useful life,” she said, noting her calculations were based on a 30-year debt schedule. “If it were determined that it’s a 20-year useful life, of course, that payment would be even higher.”
WHCA contract
Comcast Executive Director Eric Dresser discusses the decennial license renewal process, the current license began in June 2014 and expires in June 2024.
“Just recently we kicked off the process of the every-10-years cable license renewal,” he said. He and Assistant Town Administrator Kathleen Keefe have met with attorney William Soloman in a preliminary meeting, whom the board approved to enter into the contract negotiations.
He said Soloman has assured WHCA they are not in any “red zone” in terms of timing, but they are aiming to continue progress on the process. The first of the necessary steps is holding an ascertainment hearing for the community to come in and speak about the benefits of the cable access service, including feedback or changes they might like to see in a new cable license.
He asked the Select Board to set a date for an ascertainment hearing, suggesting Sept. 19 or Oct. 3. The board agreed with Dresser’s preference for Oct, 3 for a meeting with department heads about how they can better serve them under a new contract. They have already conducted an ascertainment hearing in Hanson last February.
People who can’t attend in person can write a letter to WHCA.
“Our contact goes out over the entire world, so if there’s somebody that benefits from watching our programming in Florida, we’ll take whatever from wherever they are,” he said.
