Avon High School Proposed Renovations and Additions September 7, 2006.
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Transcript of Avon High School Proposed Renovations and Additions September 7, 2006.
Avon High SchoolProposed
Renovations and Additions
September 7, 2006
Tonight’s program
• Overview of Project
• Question and answer session
Overview of Project
• Why are we here• What has happened since June 2005• Why Project is still needed• What’s included in Project• Project cost comparisons • Projected tax impact • Consequences if referendum is defeated• Revised timetable
Why are we here?
• Followed previously used process– Referendum based on schematics ($50,000)– Final architectural drawings ($1 million)
• Process successful the last 10 years
• Not successful this time due to conditions beyond control of Building Committee
• Need still here due to present and future high school enrollment
What has happened since June 2005?• Final architectural drawings developed• Project size unchanged
– 67,500 sq. ft. of additional space– 13,500 sq. ft. of renovated space
• State approval– Submitted in December– Approved in June
• Bid process• Guaranteed maximum price• Need additional $4.7 million
Why Project is still needed
• Current and projected enrollment exceeds building capacity– Additional classroom space needed to
accommodate increased enrollment (from 900 students to 1,300 students)
– Additional space needed in core facilities such as cafeteria, gymnasium, library to accommodate increased enrollment
(designed for 600-650 students; not increased in 1997 project)
Grade 9-12 Enrollment
0
200
400
600
800
1000
1200
1400
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
Actual Enrollment Projections
What’s included in ProjectNew construction—
11 General classrooms 1 Computer lab
2 Science labs 3 Special education classrooms
Gymnasium and team locker roomsCafeteriaInstrumental music roomExpanded fitness/weight room
What’s included in ProjectRenovated spaces—
Kitchen and serving area
Nurse’s office/clinic
Student support services(Psychologist, social worker, occupational therapist, speech and language therapist)
Four stairwells
Four lavatories
Hallway fire doors
What’s included in ProjectCapital improvements—
Re-roofing existing buildingReplace existing gymnasium floorStage curtain/riggingRefurbish/replace lockersReplacement of HVAC unitsUpgrade to video/audio/data
infrastructureNew food service equipmentAccessibility of football field bleachers
Floor Plan
Project cost comparisonsBudget GMP
4/1/2005 8/2/2006
Asbestos abatement $20,000 $125,000
Site development 3,028,400 3,500,000
New construction 13,999,500 16,719,835
Renovations 1,426,100 2,825,780
Capital improvements 2,308,000 2,115,000
Building permits 4,000 3,800
Construction Manager fees 450,000 536,135
CM reimbursables 800,000 1,048,800
CM contingency 962,000 600,000
Total construction costs 22,998,000 27,474,350
Owner's soft costs 3,000,000 3,223,650
Total project cost 25,998,000 30,698,000
State reimbursement (6,408,614) (7,147,512)
Net cost to Avon $19,589,386 $23,550,488
Causes of increased costs
• Rapidly increasing materials costs
• Material availability
• Increased energy costs
• Unexpected construction requirements by SDE
• Revised timing of project
Issues for the Board of Finance
• Can the Town manage the additional debt?
• If so, what will the additional and total tax impact be on each household?
Financial facts & figures
• Avon’s Grand List is $2.2 billion
• Town collects 99.97% of property taxes
• History of aggressive pay-down of debt
• Avon’s triple A bond rating
Outstanding Debt (as of July 1, 2006)G.O. Bonds (Long-Term Debt)
FY Beginning Original Debt FY Ending
Date Purpose Issue Outstanding Maturity1/15/94 RBS Renovations $5,670,000 $1,200,000 20099/15/97 AHS Renovations 4,300,000 1,760,000 20129/15/97 APD Renovations 1,800,000 740,000 20121/15/98 AHS Renovations 5,825,000 2,700,000 20127/15/98 AHS Renovations 6,915,000 3,765,750 20137/15/98 Sewer Interceptor 550,000 299,250 20137/15/02 Fisher Farms Open Space 1,295,000 932,000 20167/15/02 Thompson Brook School 14,245,000 10,163,000 2016
TOTAL BONDS………… $40,600,000 $21,560,000
Outstanding Debt (as of July 1, 2006)Bond Anticipation Notes (Short-Term Debt)
Note FY Beginning
Original Debt FY Ending
Date Purpose Issue Outstanding Maturity
3/26/03 M.H. Rhodes $1,500,000 $1,000,000 2007
6/20/05 AHS Ren. $9,000,000 9,000,000 2007
Total Notes……… $10,500,000 $10,000,000
Statutory Debt LimitationJune 30, 2006
The Base is the total tax collections, including interest and lien fees, received in the previous fiscal year.
The Base for Avon is $51,988,605.
Statutory Debt LimitationJune 30, 2006
Comparison of Debt Limitations with actual Avon Debt: Gen. Purpose: 2.25 x Base = $116,974,361 $5,112,000
Schools: 4.50 x Base = $233,948,723 $50,398,984
Sewers: 3.75 x Base = $194,957,269 $293,156
Combined Max: 7.00 x. Base = $363,920,235 $55,804,104
This includes debt actually incurred (as shown on pages 17 and 18) and debt authorized but not yet issued.
Financial facts & figures
• Town will use a mix of Bond Anticipation Notes (“BANS”) and Bonds
• Town has flexibility in scheduling principal and interest over the life of the loan
Debt Service Impact Existing and Proposed High School Renovations/Additions
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
5,500,000
6,000,000
6,500,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Fiscal Year Ending June 30
Ann
ual D
ebt S
ervi
ce
(Pri
ncip
al &
Inte
rest
)
Existing Debt
Existing Debt PlusAHSRenovations/Additions
Potential upcoming projects(rough cost estimates, subject to revision)
Town Hall Bldg. Renovations $2,000,000 (est.)
Library Expansion $7,500,000 (est.)
Fisher Meadow Ball Fields $1,000,000 (est.)_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Fire Station/Training Facility $5,000,000 (est.)
Secret Lake Water Mains $1,500,000 (est.)
Open Space Preservation ? ??
New Elementary School ? ??
Financial facts & figures
• Debt service in the FY 06-07 budget:
$5,038,337
• Annual debt service will peak at $5.5 million in FY 08-09 and then decline
• This level of debt service is manageable and will not jeopardize the Town’s credit rating
Factors in tax impact statement
• Estimated interest rate (5.36%)
• Life of borrowing period (19 years)
• Frequency of revaluations (5 year cycle)
• Potential for Grand List growth over life of borrowing
Property statistics
• About 6,600 houses and condos in Avon
• About two-thirds have an estimated market value of $400,000 or lower
• Median assessed value is $202,470
Selection of model properties
• Based on assessed valuation, not market or desired sales price
• Assume assessed value will increase at same rate as Grand List following each 5-year revaluation
• Then model properties at 25th, 50th and 75th percentiles
If Project is approved: tax impact over 19 years
Property Assessment Percentile:Adopted Proposed Total Avg./
2005 2006 Cost Yr.
25th $1,755.82 $357.23 $2,113.05 $111.21
50th $2,419.69 $492.29 $2,911.98 $153.26
75th $3,450.22 $701.95 $4,152.17 $218.53
Tax impact example
Estimated market value of home $285,715
Home taxable assessment $200,000 (70% of estimated value)
Tax impact over 19 years—Adopted 2005 $2,390.18Proposed 2006 486.36
Total $2,876.54
Average per year $151.40
Determine your own tax impact over 19 years
Total proposed borrowings —
Multiply your assessed value by
Adopted Proposed Total
2005 2006
.011950 .00243 .01438
Additional operating costs
Added space costs—Utilities, custodial/maintenance, insurance
First year after construction $425,000
Each subsequent year $ 11,000
Added educational costs—
Teaching personnel, instructional materials and supplies, equipment
Average annual increase $340,000
Consequences if referendum is defeated
• Six portable classrooms needed in fall 2007; more in future years
• State does not reimburse for portable classrooms• Capital improvements will be capital projects in future• Core spaces cannot accommodate increased enrollment
(library, cafeteria, gymnasium)• Significant additional architectural fees and other costs
for changes in scope and redesign• Increased construction costs are highly probable• State reimbursement may be less in the future
Revised timetable
• October 11, 2006—Referendum6 am-8 pm at Avon Senior Center
• November 2006-summer 2007—Construction of cafeteria and gymnasium
• Summer 2007-spring 2008—Construction of new classroom addition
• Late spring 2008—Project complete
Avon High SchoolProposed
Renovations and Additions