VOTE TO RESCIND OVERRIDE FOR SCHOOL PROJECT
Residents have an important vote at the October 20, 2016 Templeton special town meeting. We will vote to rescind the Proposition 2 1/2 debt exclusion for the Templeton Elementary School building project. A yes vote will stop the school building project until we know it’s real cost and the condition of the town's finances.
Templeton’s town debt will reach $40 million with the new elementary school costs. Citizens concerned about Templeton’s uncertain financial situation drove the petition to bring the article to a vote. Unfinished audit reports, potentially large deficits from previous years, and the real costs for the school project are the major concerns.
Some residents who voted for the project are concerned that we have written a blank check for this project when we may not be able to afford it.
The Elementary School project estimate of $47 million contains a 5% contingency for cost overruns. I have spoken to several officials from other towns in the region and they agree that 8-10% is more realistic for a project of this scale. That would push the town’s portion to $28.0 million (not $24 million) but fact is we won’t know the real cost until after all bids are in.
The long term debt calculation for the school project used a 3.5% annual interest rate for 28 years which assumed a “a” bond rating. We won’t know the actual interest rate and bond rating until the audit is complete. Audits for 2013-2016 have started but won’t be complete until next year. A $1 million deficit was discovered already in the audit of 2013. A “baa” bond rating with long term interest rate as high as 6% per year is more likely.
The tax rate increase of $1.74 per $1000.00 estimated for the school project could be twice that after adding the actual project costs, the cost of prior year deficits and the funding for a number of town infrastructure projects (replacing the ladderhill water tank, a new sewage station, emergency road repairs)
Vote Yes to rescind the Proposition 2 1/2 debt exclusion tax override vote for the Templeton Elementary School building project!
Paul Grubb
Templeton
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