Boe presentation 2 28 jw

School District ReferendumHearing

February 28, 2015

Why is the District Proposing a Referendum for School Construction?

• After years of evaluation, the Board has concluded that there are various district facilities in need of investment.

• The Board of Education has funded all capital improvements through its operating budget for the past ten years, focusing on classroom additions.

• The Board of Education believes the current referendum will enhance all major components of the school district.

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•The 1995 bond matures at the end of this school year.

•The district has just re-financed its current debt, saving the taxpayers roughly $3.8 million over the term of the current bond.

•Interest rates are historically low, translating into a lower impact to the taxpayer.

Why Is the District Proposing a Referendum for School Construction?

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Why Has the Board of Education Chosen these Construction Projects?

•High School Auditorium▫Investment in the auditorium cannot be

pushed off further.▫It is not possible to expand the auditorium

at its current location because of its footprint and location in between LAF and CHS.

▫It is not possible to build a new auditorium at the CHS property because the property is fully developed.

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•New Auditorium at the Middle School▫Given space constraints at both CHS and

CMS, the best use of funds is to build a new auditorium that will provide: More seating capacity. More storage capacity. Set-construction space. Improvement of support features, like sound

booth, dressing rooms, etc. Re-purposing of the current auditorium into

needed classroom and professional office space.

Why Has the Board of Education Chosen these Construction Projects?

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•Conversion of Current CMS Auditorium▫Additional design and technology classrooms

will reduce pressure on instructional spaces in the building.

▫Additional D & T classrooms will support the curricular program and recent investments in STEM.

▫Integrated office space will save the district between $85k - $100k in operating costs associated with rental, utility, and other costs at the current Board offices.

Why Has the Board of Education Identified these Construction Projects?

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•Conversion of Current CMS Auditorium▫All components of this project qualify for

state debt relief, reducing the cost to the taxpayers from $3.4 million to $2.1 million.

▫Coupled with savings in operating costs, this is the most cost-efficient aspect of the referendum proposal.

Why Has the Board of Education Identified these Construction Projects?

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•Elementary Classrooms▫The school district has operated at or

beyond functional capacities in its elementary schools.

▫Enrollment has not declined as predicted.▫Six new classrooms will relieve pressure on

classroom use and provide the district with more flexibility.

Why Has the Board of Education Identified these Construction Projects?

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•Cougar Field▫Many materials and facilities at Cougar,

including the bleachers, fencing, macadam, and parking plan are in need of improvement.

▫A running/walking path will help support one of our largest athletic activities, boys and girls cross country.

Why Has the Board of Education Identified these Construction Projects?

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•High School Fields▫The fields have suffered from years of

construction behind the high school.▫Installing turf fields behind the high school

will expand usage of the fields and make it possible for physical education classes, athletic teams, and Marching Band to be on the field for a greater amount of time.

Why Has the Board of Education Identified these Construction Projects?

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Tax Impact

per $100k of Assessed Value House Assessed at $700,000Chatham Borough $25.43 $178.03Chatham Township $24.56 $171.91

*These figures represent the latest estimates and assume a 3.5% interest rate.

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•Breaking the Referendum into Multiple Questions▫The three auditorium projects cannot be

separated because they are inter-dependent Defeat of the new auditorium + approval of the

CMS auditorium conversion = no auditorium at all at CMS

Approval of the new auditorium + defeat of the CMS auditorium conversion = two auditoriums at CMS

Defeat of both CMS auditorium projects + approval of CHS auditorium = Inadequate CHS auditorium

Specific Questions

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•Operating Costs▫Our architect and Honeywell Systems estimate

operating costs of the new auditorium to be between $17k and $21k.

▫The district estimates a $20k increase in custodial costs.

▫The savings derived from the relocation of the district offices would be at least $85k.

▫The changes in operating costs associated with the auditorium projects would be net positive for the district.

Specific Questions

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•Program Improvements versus Capital Improvements▫Program additions may be accomplished

through the operating budget and via second questions, resulting in a permanent increase in the tax levy

▫Capital improvements accomplished via referendum are financed over a period of time and paid off.

Specific Questions

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•Program Improvements versus Capital Improvements—Comparison of Tax Impact

Specific Questions

April, 2014Second Question of $460,000 to expand STEM programs

Resulted in an annual tax increase of about $8 per $100,000 of assessed home value

Tax levy increase was permanent

April, 2015Referendum of $24.8 million to improve numerous district facilities and operations

Would result in an annual tax increase of about $25 per $100,000 of assessed home value

Tax levy increase is retired after 20 years

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• Why not renovate the existing auditoriums without building a new one?▫The cost of a “facelift” interior improvement would

range between $900k and $2 million for each auditorium.

▫The cost of a more comprehensive renovation would rise to between $3 and $4 million per auditorium. More comprehensive renovations would include: Roof replacement at CHS HVAC systems at both schools Modification of sound booths, dressing rooms, etc., Expansion of lobby at CHS

Specific Questions

Included in current referendum

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•Why not renovate the existing auditoriums without building a new one?▫The lack of a new auditorium means the

inability to utilize the current CMS auditorium for design & technology classrooms and professional offices.

▫The lack of a new auditorium makes it impossible to incorporate proper storage space, increased seating capacity, and other features into the auditorium.

Specific Questions

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•What will the new auditorium look like?▫If the referendum were to pass, a

committee of stakeholders would work with the district architect to provide feedback on the design of the new auditorium.

▫The new auditorium would be an aesthetic ENHANCEMENT to the current middle school facility.

Specific Questions

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•Will construction of the new auditorium be disruptive?▫Though all construction is disruptive to a

degree, the middle school site is LESS DISRUPTIVE because we would not need to de-commission any classrooms.

▫We also have worked with the architects on a staging and traffic plan to ensure minimal disruption.

Specific Questions

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•What happens if the referendum fails? The district would not accomplish any of

the projects at the current time. The Board would evaluate whether to propose

another referendum at a time when interest rates may be higher.

The Board would have to find ways to address projects of the highest priority through the operating budget or capital reserve.

Some the projects would be delayed or not accomplished at all.

Specific Questions

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Questions/Comments

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