The public forum last Tuesday night (March 9) at Longmeadow HS on the proposed FY11 budget was a chance for town residents to provide some guidance to the Select Board as they make the necessary final FY11 budget cuts. At this meeting town residents provided balanced feedback citing the importance of schools, library, parks and recreation programs, senior center, police/ fire.... not wanting cuts from any of these important town programs.
Below are a couple of video clips (courtesy of LCTV) of comments made by town residents expressing their concern for cuts in various programs. [A web rebroadcast of the entire public forum is posted on LCTV's website.]
The first video shows town resident Jamie Cass- a Springfield teacher commenting on the town’s outstanding Parks and Recreation program and the Storrs Library and asks that the Select Board not cut funds to either program.
The second video is town resident Irene Madden- a career school librarian and Storrs Library board member overviewing all of the many programs provided by the Children’s Library staff.
The third video clip shows town resident Saul Finestone appealing to the Select Board not to cut the Longmeadow Adult Center budget because of all the important programs that it provides for senior citizens in our town.
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I think that it's important to understand that there have been many more cuts proposed than will likely be needed to create a balanced FY11 budget. The ongoing budget discussions involve identifying potential budget cuts and then prioritizing them.
The latest information yesterday from the state legislature recommended that towns prepare for a 4% maximum cut in local aid. This should provide some relief for the FY11 budget and allow the Select Board to restore some of the proposed budget cuts.
The Select Board has another goal and that is to create a "sustainable budget" so the current fiscal problems do not reappear year after year. "Our expenditures are too high and the rate of increase too great to be sustainable and must be reduced." This message is repeated at virtually every SB meeting since November. It will be very interesting to see how budget process ends up... it is the not the first time that our town leaders have tried to tackle the imbalance of expenditures vs. revenue growth.
It is not too late to provide your inputs to the Select Board regarding proposed program cuts in the FY11 budget. The Select Board will meet again on March 15 to discuss the budget and there is a public comment period at the beginning of the meeting.
On March 22 the SB will approve the final FY11 budget (town + schools) to be presented at the Annual Town Meeting on May 11.
Saturday, March 13, 2010
Tuesday, March 9, 2010
A New High School…Finally
I am a retired music teacher who lives in Longmeadow. My great grandfather, grandfather, and father taught me what they knew best, the building trade. They built homes featured in Better Homes and Gardens for Mike Wallace and Ginger Rogers. They also built churches and schools for more than 80 years.
Longmeadow High School was built nearly 60 years ago. In response to Leo Vartanian’s Reminder article, a school is not at all like a personal residence. It’s building, design, maintenance and use are all different. Most folks today don’t spend 60 years in a home. A school facility plays host to thousands of students, as well as hundreds of parents and community events. Many school buildings are seeing an expanded role for the future.
I came to Longmeadow in 1973 and entered a “newly renovated” room. My dad and I looked at the work and contacted officials to have many things changed or corrected. Unfortunately little was ever substantively changed and I worked in this facility for the next 35 years. For example, a door designed for the purpose of moving the piano on and off the stage was 2” too small. The crumbling asbestos covering a pipe in the music lab would stay in place until 8 years ago when a parent finally demanded its removal.
During my tenure, the music program grew to number almost half of the high school population. We were recognized with several Grammy and other awards for excellence. Our auditorium remains one of the poorest in the region from every perspective. It has only 614 seats and a small stage that doesn’t really accommodate some of our groups. Our local fire department has asked us to limit the enthusiast attendance at our concerts because the facility is too small it and can create an unsafe situation. The inadequate ventilation can be louder than the music and therefore is best when turned off. Our seats, finally recovered by the Hampden County Jail inmates a few years back, still feature an “individual broken spring massage” which make them difficult to sit in for very long. The lighting was finally replaced when a school committee person’s daughter was nearly electrocuted. The new lighting board was replaced with the cheapest available board and only functions nominally.
As a past Department Chair and Coordinator of Music grades K-12, I also respect the fact that the other departments have similar stories to tell. The science lab situation is one good example.
Longmeadow real estate has maintained its value for many reasons, not the least of which has been the reputation of the schools. The excellent teachers, motivated students, and successful parents are responsible for this continued success, despite the conditions of the facilities, books and equipment. Successful private industry looks to improve its tools and facilities to maximize the results. Shouldn’t education do the same? Imagine the new standards that we could establish at the high school with better conditions.
Each year we are told of economic hard times and uncertainty. This has been the consistent story since 1981, although it has not always been true. This year it is the truth and the town’s operating budget reflects that fact. The music department’s string program was reduced last year and may be eliminated in this budget. Is this the price of excellence?
The new school is a capital improvement that will be paid for over a long period of time and contribute to our community for the next 60 years. It is fiscally wise to separate your yearly operating budget from long-range capital improvements. I also understand that a negative vote on this school will put us at the end of the reimbursement line for as much as ten years. Can Longmeadow afford that? Mr. Vartanian suggests that we consider spending the money as though it is our own, and I agree. We sent this money to Boston in our taxes and fees. Let’s be smart and reclaim our money though the 30 to 40 million-dollar reimbursement a new school will yield. Vote for the new school that our kids and town both need and deserve.
Peter Thomsen
Longmeadow, MA
Longmeadow High School was built nearly 60 years ago. In response to Leo Vartanian’s Reminder article, a school is not at all like a personal residence. It’s building, design, maintenance and use are all different. Most folks today don’t spend 60 years in a home. A school facility plays host to thousands of students, as well as hundreds of parents and community events. Many school buildings are seeing an expanded role for the future.
I came to Longmeadow in 1973 and entered a “newly renovated” room. My dad and I looked at the work and contacted officials to have many things changed or corrected. Unfortunately little was ever substantively changed and I worked in this facility for the next 35 years. For example, a door designed for the purpose of moving the piano on and off the stage was 2” too small. The crumbling asbestos covering a pipe in the music lab would stay in place until 8 years ago when a parent finally demanded its removal.
During my tenure, the music program grew to number almost half of the high school population. We were recognized with several Grammy and other awards for excellence. Our auditorium remains one of the poorest in the region from every perspective. It has only 614 seats and a small stage that doesn’t really accommodate some of our groups. Our local fire department has asked us to limit the enthusiast attendance at our concerts because the facility is too small it and can create an unsafe situation. The inadequate ventilation can be louder than the music and therefore is best when turned off. Our seats, finally recovered by the Hampden County Jail inmates a few years back, still feature an “individual broken spring massage” which make them difficult to sit in for very long. The lighting was finally replaced when a school committee person’s daughter was nearly electrocuted. The new lighting board was replaced with the cheapest available board and only functions nominally.
As a past Department Chair and Coordinator of Music grades K-12, I also respect the fact that the other departments have similar stories to tell. The science lab situation is one good example.
Longmeadow real estate has maintained its value for many reasons, not the least of which has been the reputation of the schools. The excellent teachers, motivated students, and successful parents are responsible for this continued success, despite the conditions of the facilities, books and equipment. Successful private industry looks to improve its tools and facilities to maximize the results. Shouldn’t education do the same? Imagine the new standards that we could establish at the high school with better conditions.
Each year we are told of economic hard times and uncertainty. This has been the consistent story since 1981, although it has not always been true. This year it is the truth and the town’s operating budget reflects that fact. The music department’s string program was reduced last year and may be eliminated in this budget. Is this the price of excellence?
The new school is a capital improvement that will be paid for over a long period of time and contribute to our community for the next 60 years. It is fiscally wise to separate your yearly operating budget from long-range capital improvements. I also understand that a negative vote on this school will put us at the end of the reimbursement line for as much as ten years. Can Longmeadow afford that? Mr. Vartanian suggests that we consider spending the money as though it is our own, and I agree. We sent this money to Boston in our taxes and fees. Let’s be smart and reclaim our money though the 30 to 40 million-dollar reimbursement a new school will yield. Vote for the new school that our kids and town both need and deserve.
Peter Thomsen
Longmeadow, MA
Saturday, March 6, 2010
A difficult budget process continues…
Recent Select Board meetings have been been primarily focused upon making some difficult decisions about needed town government cuts for the upcoming FY2011 budget. The uncertainty about state aid to Longmeadow (estimates vary from 0 to 15% cut) has only made the process more difficult.
Proposed budget cuts for Storrs Library, Longmeadow Adult Center and other town departments will likely impact town services and quality of life in Longmeadow. I listened to the SB meeting this past Monday (~ 3½ hours) and observed that there was great disagreement within the SB as to how to achieve the required cuts.
In addition to proposing some additional cuts, Town Manager, Robin Crosbie also identified a number of new revenue sources to help bridge the gap that included:
Proposed budget cuts for Storrs Library, Longmeadow Adult Center and other town departments will likely impact town services and quality of life in Longmeadow. I listened to the SB meeting this past Monday (~ 3½ hours) and observed that there was great disagreement within the SB as to how to achieve the required cuts.
In addition to proposing some additional cuts, Town Manager, Robin Crosbie also identified a number of new revenue sources to help bridge the gap that included:
- Fee based curbside trash collection ( save ~$570,000)
- Implementation of the new 0.75% meal tax on local restaurants (estimated increase in revenue ~$65,000)
- Reinstitute School Choice (this source can be initiated only by the School Committee)
- Proposition 2½ Override
Every 1% override would add $382,000 to town revenue and cost individual property owners $0.18/ $1000 or ~$64 for average $350,000 house. The SB was not recommending an override at this time but considering it as a possible option to bridge the expenditure/ revenue gap.
I applaud the SB for their open and honest discussion of the FY11 budget and their desire to reshape the entire town’s operations (including the school department) onto to a more sustainable path. One of my recent posts included an LCTV video clip of Rob Aseltine explaining the financial problem confronting Longmeadow both short term and long term.
At this point it appears that the Town Manager with the help of the various department heads has selected and prioritized a larger than required list of cuts that could be made to achieve the targeted budget. One note of interest is that the FY11 budget appears to be a “moving target” given the uncertainty of state aid. At this week’s SB meeting, it was agreed to use a 10% (vs. 15%) cut in state aid in developing the FY11 budget. It is likely that the exact amount of state aid to Longmeadow will not be known until well after the FY11 begins.
The selected video clip from this week’s SB meeting is Rob Aseltine expressing his dissatisfaction with the level of personnel cuts included in the latest budget revision (referred to as the March 1 budget).
There are some important meetings this coming week….
Monday, March 8
Joint meeting between School Committee and Select Board to discuss FY11 Budget
7 PM at Longmeadow School Committee Room
Tuesday, March 9
Budget Public Forum- draft FY11 budget- presented by Town Manager, Robin Crosbie7 PM at Longmeadow High School/ Cafeteria
I would urge town residents to attend the March 9 forum and provide input to our town leaders for prioritization of the needed budget cuts.
Friday, March 5, 2010
Longmeadow High School-A Principal’s Perspective
As a resident, parent and administrator in Longmeadow for nearly twenty five years, I would like to share my thoughts on the high school building project. This will be one of the largest projects in the town’s history, and the focus must be on our children and the importance of their education.
When considering a long term, viable building solution, we must remember that we are creating a facility that will serve not only as an educational institution but also as the environment where our children will learn the necessary life skills to become successful contributors to their communities. It is, therefore, essential that we focus on the attributes of a high quality/high-performing school.
A high-performing building should be designed logically to fully support all facets of the educational Program of Studies and to support the values and priorities of the community.. It must provide appropriate classroom, office, meeting and collaborative spaces that accommodate a variety of teaching and learning styles. These spaces need to be flexible to adapt to teaching strategies that will address 21st century learning expectations. It must be appropriately sized and equipped to support our widespread student participation in co-curricular activities such as athletics, music and fine arts. Proper design must include outside views, bright well-lit classrooms, and an efficient, comfortable heating and cooling system.
The building will also serve the greater community. When equipped with attractive public spaces, such as an auditorium, library, cafeteria, gymnasium, fitness center and thoughtfully laid out athletic fields, people will be drawn to the facility. The entryway to the building will have display areas that highlight student achievement. Artifacts honoring the community’s heritage along with student artwork and murals will adorn the walls. Academic and extra-curricular accomplishments will be celebrated and spaces will be thoughtfully constructed so that everyone feels “at home.” The exterior spaces will be equipped with ample parking for staff, students and guests, yet encourage alternate means of transportation by providing bike racks and sidewalks.
The strength of Longmeadow High School has always been the intellectual ability of our students and the determination to excel that they bring to school each day. When this desire to learn is combined with effective instruction and supported by a modern facility, we will have the formula for success.
This is an exciting time for our community! The decisions to be made in the coming months will affect young people’s lives for generations to come. The final planning process will require vision and determination. As residents of Longmeadow, we need to choose wisely with an affirmative vote. With a project of this magnitude, where the stakes are high and the window of opportunity open only briefly, there is little room for error.
By Larry Berte- Principal, Longmeadow High School
When considering a long term, viable building solution, we must remember that we are creating a facility that will serve not only as an educational institution but also as the environment where our children will learn the necessary life skills to become successful contributors to their communities. It is, therefore, essential that we focus on the attributes of a high quality/high-performing school.
A high-performing building should be designed logically to fully support all facets of the educational Program of Studies and to support the values and priorities of the community.. It must provide appropriate classroom, office, meeting and collaborative spaces that accommodate a variety of teaching and learning styles. These spaces need to be flexible to adapt to teaching strategies that will address 21st century learning expectations. It must be appropriately sized and equipped to support our widespread student participation in co-curricular activities such as athletics, music and fine arts. Proper design must include outside views, bright well-lit classrooms, and an efficient, comfortable heating and cooling system.
The building will also serve the greater community. When equipped with attractive public spaces, such as an auditorium, library, cafeteria, gymnasium, fitness center and thoughtfully laid out athletic fields, people will be drawn to the facility. The entryway to the building will have display areas that highlight student achievement. Artifacts honoring the community’s heritage along with student artwork and murals will adorn the walls. Academic and extra-curricular accomplishments will be celebrated and spaces will be thoughtfully constructed so that everyone feels “at home.” The exterior spaces will be equipped with ample parking for staff, students and guests, yet encourage alternate means of transportation by providing bike racks and sidewalks.
The strength of Longmeadow High School has always been the intellectual ability of our students and the determination to excel that they bring to school each day. When this desire to learn is combined with effective instruction and supported by a modern facility, we will have the formula for success.
This is an exciting time for our community! The decisions to be made in the coming months will affect young people’s lives for generations to come. The final planning process will require vision and determination. As residents of Longmeadow, we need to choose wisely with an affirmative vote. With a project of this magnitude, where the stakes are high and the window of opportunity open only briefly, there is little room for error.
By Larry Berte- Principal, Longmeadow High School
Saturday, February 27, 2010
Some Additional Info on School Building Project
I wasn't able to attend last Thursday's SBC Public Information Session but was obtain and post the slides from the meeting on the SBC website. There are a couple of slides from this presentation that I hadn't seen before and are worth sharing.
A detailed site plan......
A detailed site plan......
[click to enlarge]
and a ground level view of the front entrance of the new high school.
[click to enlarge]
The latest project budget information was also presented at this public forum. Below is the slide from the presentation.
[click to enlarge]
For those town residents who want to learn more about the school building project, I invite you to visit the SBC website and to continue visiting the LongmeadowBuzz blog.
Thursday, February 25, 2010
Longmeadow's FY11 Budget
This week’s Select Board discussion on the FY11 budget provided some good insight into the current “state of town finances”. However, what I observed was not very encouraging. The uncertainty about the level of local state aid makes this current budget development process very difficult. The current budget proposal assumes a 15% drop in state aid. There was some discussion at this meeting as to whether or not this number should be reduced since the rhetoric from Boston in this election year suggests that the state will deliver.
Below are two short video excerpts (less than 10 min. each) from this meeting that are worth watching. The first is an overview of the town government portion of the FY11 draft budget discussed by Town Manager Robin Crosbie. It should be noted that a final budget will not be adopted by the Select Board until March 22.
Ms. Crosbie highlighted that town expenditures were being reduced through various means including a reduction of normal maintenance work (essential repairs only), a cut in library hours (50 hours to 45 hours), less maintenance of athletic fields (+ reduced fertilizer, water, etc…). In addition, there are headcount reductions at the library and DPW. Ms. Crosbie did mention that she was hoping that Carl Sturgis, Library Director would be able to restore library hours to 50 hours by shifting some other sections of the budget.
The second clip includes comments by Select Board members Rob Aseltine and Mark Gold highlighting that the town budget at the level of current services is unsustainable due to the faster growth of expenditures relative to revenue. In addition, the level of expenditures for the current budget is too high. The choices are either continuing cuts in services that will erode our quality of life in many ways or accepting the need for periodic overrides to keep pace with the escalating costs and lower revenue growth.
There is a budget forum that will be held on March 9 at 7 PM in the Longmeadow HS cafeteria. I urge all town residents to attend or watch it on LCTV. The FY11 budget is an important issue affecting all Longmeadow residents.
[The above video clips were provided courtesy of LongmeadowBiz + LCTV. A web broadcast of entire Select Board/ School Committee meetings can watched by visiting the LCTV website.]
Below are two short video excerpts (less than 10 min. each) from this meeting that are worth watching. The first is an overview of the town government portion of the FY11 draft budget discussed by Town Manager Robin Crosbie. It should be noted that a final budget will not be adopted by the Select Board until March 22.
Ms. Crosbie highlighted that town expenditures were being reduced through various means including a reduction of normal maintenance work (essential repairs only), a cut in library hours (50 hours to 45 hours), less maintenance of athletic fields (+ reduced fertilizer, water, etc…). In addition, there are headcount reductions at the library and DPW. Ms. Crosbie did mention that she was hoping that Carl Sturgis, Library Director would be able to restore library hours to 50 hours by shifting some other sections of the budget.
The second clip includes comments by Select Board members Rob Aseltine and Mark Gold highlighting that the town budget at the level of current services is unsustainable due to the faster growth of expenditures relative to revenue. In addition, the level of expenditures for the current budget is too high. The choices are either continuing cuts in services that will erode our quality of life in many ways or accepting the need for periodic overrides to keep pace with the escalating costs and lower revenue growth.
There is a budget forum that will be held on March 9 at 7 PM in the Longmeadow HS cafeteria. I urge all town residents to attend or watch it on LCTV. The FY11 budget is an important issue affecting all Longmeadow residents.
[The above video clips were provided courtesy of LongmeadowBiz + LCTV. A web broadcast of entire Select Board/ School Committee meetings can watched by visiting the LCTV website.]
Wednesday, February 24, 2010
Loss of Longmeadow's Library Services
The culture and community of Longmeadow is based on a foundation of learning. We pride ourselves in our School System. It serves 3,100 children. For this system the town budgeted to spend 74% of town revenues this year, or $34,500,000, for schools. Our Storrs Library also is one of our prides. The Library serves all 16,000 of us. This year our town budgeted 1.8% of revenues, or $838,000, for our Library; this amount is one fortieth of what we spend on the schools.
For next fiscal year, your town government is looking to reduce library hours to below the minimum required by State government to obtain their financial support. Should library hours be cut to below 50 per week, Storrs Library will be decertified by the state.
WHAT LONGMEADOW LIBRARY WILL LOSE IF DECERTIFIED !
For next fiscal year, your town government is looking to reduce library hours to below the minimum required by State government to obtain their financial support. Should library hours be cut to below 50 per week, Storrs Library will be decertified by the state.
WHAT LONGMEADOW LIBRARY WILL LOSE IF DECERTIFIED !
- All free borrowing privileges and services at area libraries
- State funds to purchase, maintain, and upgrade library computers
- Access to important educational materials for students from elementary school through college
- Professional staff to provide research assistance for school projects, workforce development and online government resource use
- Full programming schedules throughout the year for CHILDREN and adults
- Free and open access to wireless and broadband internet connections
- Timely and convenient access to current newspapers, periodicals, books, DVDs and audio.
Town government must budget next year what is needed to keep our Storrs Library doors open and functioning well 50 hours per week.
To prevent decertification, email or write NOW to your Select Board and Town Manager:
Robert Barkett; Paul Santaniello; Rob Aseltine; William Scibelli; Robin Crosbie; Mark Gold
Write them at Select Board, Town of Longmeadow, 20 Williams Street, Longmeadow, MA 01106
Your Select Board meets next Monday, March 1 and on March 8 to continue their discussion of library funding for next year.
Submitted by Roger Wojcik
Financing the Longmeadow High School Project
Below is a copy of a press release with some additional information about the financing costs of the Longmeadow High School project...
The final actual cost of the Longmeadow High School project is probably three years away at best- once the mortar sets, the paint has dried and the classrooms are filled with students.
What will be known in the very near future is the state’s agreed upon portion of the debt and the Town’s share. The appropriation of the Town’s share of the debt is controlled by Town Meeting which is scheduled for vote at the May 25, 2010 Special Town Meeting. The vote at Town meeting will be contingent upon a successful June 8, 2010 debt exclusion ballot vote authorizing the borrowing of the Town’s share of the debt.
Current estimates for the new structure and renovation portion of the High School are approximately $78.5 million. The more important number to the Longmeadow taxpayer is the Town’s share of the project. This amount is currently estimated at $46.6 million dollars and is subject to change based on the MSBA (Massachusetts School Building Authority) Project and Scope meeting currently scheduled for March 31st. Upon MSBA approval of Project Scope and Budget, the Town will only have 120 days to successfully fund the Town’s share. Under the MSBA’s current project financing methodology, the Town will progressively receive the MSBA’s share of the project which eliminates the need for the Town to borrow the full project cost. The Town will only have to borrow its share of the total cost which will save the Town hundreds of thousands of dollars in interest costs.
How will the $46.6 million be financed and how will it affect the individual taxpayer?
An example of one financing option uses equal principal payments over a 25 year bond life at a 3.5% interest rate. Currently, the average assessed home value in Longmeadow is $350,000 which equates to an average increase in taxes of approximately $455 per year over the life of the debt (see Chart A below for tax increases for each year).
The final actual cost of the Longmeadow High School project is probably three years away at best- once the mortar sets, the paint has dried and the classrooms are filled with students.
What will be known in the very near future is the state’s agreed upon portion of the debt and the Town’s share. The appropriation of the Town’s share of the debt is controlled by Town Meeting which is scheduled for vote at the May 25, 2010 Special Town Meeting. The vote at Town meeting will be contingent upon a successful June 8, 2010 debt exclusion ballot vote authorizing the borrowing of the Town’s share of the debt.
Current estimates for the new structure and renovation portion of the High School are approximately $78.5 million. The more important number to the Longmeadow taxpayer is the Town’s share of the project. This amount is currently estimated at $46.6 million dollars and is subject to change based on the MSBA (Massachusetts School Building Authority) Project and Scope meeting currently scheduled for March 31st. Upon MSBA approval of Project Scope and Budget, the Town will only have 120 days to successfully fund the Town’s share. Under the MSBA’s current project financing methodology, the Town will progressively receive the MSBA’s share of the project which eliminates the need for the Town to borrow the full project cost. The Town will only have to borrow its share of the total cost which will save the Town hundreds of thousands of dollars in interest costs.
How will the $46.6 million be financed and how will it affect the individual taxpayer?
An example of one financing option uses equal principal payments over a 25 year bond life at a 3.5% interest rate. Currently, the average assessed home value in Longmeadow is $350,000 which equates to an average increase in taxes of approximately $455 per year over the life of the debt (see Chart A below for tax increases for each year).
[click to enlarge]
A 5% interest rate would average a tax increase of $516 per year for a $350,000 assessed home (see Chart B below). These are only examples.
Several different financing options are currently being reviewed in order to minimize the tax impact. Some areas of consideration include: supplemental grant funds availability; conventional tax exempt bonding versus other bonding options available; timing of permanent bonding; consideration of phasing the borrowing to take advantage of current low rates; and, the overall town debt schedule. It is our goal to minimize the tax impact to all residents by leveraging the best financing and grant options available.Paul J. Pasterczyk
Finance Director, Town of Longmeadow
Member, Longmeadow School Building Committee
Saturday, February 20, 2010
Understanding the Numbers…
If you have been somewhat (or totally) confused about the cost of the new high school as a homeowner/ taxpayer, you are not alone…. I have attended all of the public meetings on the School Building project in order to provide commentary here on the LongmeadowBuzz blog but came away confused from the last public forum on February 11. Below is a summary of what I have learned since this forum.
For the "average" homeowner with an property assessment of $350,000..
_____________________________________________
The public forum last September 30 provided an estimate of taxpayer costs as shown in the slide below…
Note 2: Because of lower property values for the current FY10, the average home assessment is now $350K (vs. $370K). The average annual tax increase for a typical $350,000 home over 25 years is estimated to be ~$450/year which translates to a mil rate of $1.28/ $1000.
At this point I was confused and had a couple of questions….
1. Did the average taxpayer cost of the project increase by 22% from Sept 30 to Feb 11 ($370 --> $450)?
2. Why was the average taxpayer cost for the first four years after completion of the project now $563 or $1.61/$1000? Was that a 52% increase ($370 --> $563) from the Sept 30 estimate?
I asked Paul Pasterczyk, Longmeadow’s Finance Director and a member of the School Building Committee and Christine Swanson/ SBC- co-chair for some clarification.
Here is what I found out…
1. The September 30 forum number was miscalculated and wrong!
2. The latest tax increase estimates which varied each year (higher beginning in FY2014 and lower at the end- FY2038) were based upon a fixed principal repayment bond repayment scenario vs. a constant debt service bond scenario. It should be noted that the quoted $450 average tax increase does not occur until FY2026!
To further understand this numbers, I calculated the year by year the tax increase for the two bonding scenarios and the results are shown below.
[click to enlarge spreadsheet]
For the "average" homeowner with an property assessment of $350,000..
- The average tax increase will be $532/yr (mil rate increase = $1.52/1000) for the first 10 years (FY14 - FY23) after new high school is opened.
This compares to the $450/yr for 25 years (duration of school bond) figure that was presented at the 2/11/10 forum. - To calculate your average property tax increase for each of the first 10 years...
Multiple the mil rate increase x property assessment (1000’s)
example: $275,000.... 275 x $1.52 = $418/year - Click here to look up your current FY10 property assessment so that you can calculate your increase in future property taxes.
_____________________________________________
The public forum last September 30 provided an estimate of taxpayer costs as shown in the slide below…
The estimated tax increase was ~ $1.00/ $1000 (mil rate increase) of property assessment or ~$372 for an average $370,000 home.
However, at the latest School Building forum on February 11, the average taxpayer annual increase presented appeared to increase signficantly even though the town’s share of the project cost had shown only a small increase ($44M --> $46 million, + 4.5%).
FY11: $11; FY12: $65; FY13: $150; FY14: $580;
FY15: $567; FY16: $557; FY17: $546
Note 2: Because of lower property values for the current FY10, the average home assessment is now $350K (vs. $370K). The average annual tax increase for a typical $350,000 home over 25 years is estimated to be ~$450/year which translates to a mil rate of $1.28/ $1000.
At this point I was confused and had a couple of questions….
1. Did the average taxpayer cost of the project increase by 22% from Sept 30 to Feb 11 ($370 --> $450)?
2. Why was the average taxpayer cost for the first four years after completion of the project now $563 or $1.61/$1000? Was that a 52% increase ($370 --> $563) from the Sept 30 estimate?
I asked Paul Pasterczyk, Longmeadow’s Finance Director and a member of the School Building Committee and Christine Swanson/ SBC- co-chair for some clarification.
Here is what I found out…
1. The September 30 forum number was miscalculated and wrong!
2. The latest tax increase estimates which varied each year (higher beginning in FY2014 and lower at the end- FY2038) were based upon a fixed principal repayment bond repayment scenario vs. a constant debt service bond scenario. It should be noted that the quoted $450 average tax increase does not occur until FY2026!
To further understand this numbers, I calculated the year by year the tax increase for the two bonding scenarios and the results are shown below.
[click to enlarge spreadsheet]
For this first bond scenario the average tax increase for the first 10 years is $532.
[click to enlarge spreadsheet]
The second spreadsheet shows a constant debt service or tax increase of $469/year (mil rate increase = 1.34) for property owners.
Total increased tax payments by the "average" taxpayer over the term of the 25 year bond ranged from $11,250 (scenario #1) to $11,729 (scenario #2).
While I do not want to handcuff our bonding process, it would seem to me that the second bond scenario that provides for lower taxes in the first 10 years would be the preferred option for taxpayers.
I am interested in accurate estimates of the cost for our new high school. I would also ask the School Building Committee to present the taxpayer information in a more upfront manner. Quoting the FY11 --> FY13 tax increases as part of the tax increase picture is OK as long as we don't use it to minimize the cost that we will incur for many years to come.
By the way.... let's not forget the $750,000 that we have spent for the current planning/ design phase that is now bonded for 5 years at an average taxpayer cost of $30/year.
Tuesday, February 16, 2010
The Longmeadow School Building Project Continues Forward
Last Thursday, the Longmeadow School Building Committee (SBC) hosted a Public Information Session to update town residents about the new high school building project. If you were not able to attend or watch the session on LCTV it is available via webcast on the SBC website.
A press release from the SBC released yesterday is also available.
Below is a short video clip (9 min) from this meeting with Christine Swanson, SBC co-chair summarizing the financial aspects of the project.
The key highlights for the project include:
Total cost: $78,452,888
State reimbursement: $32,310,867
Town Cost: $46,142,020
Overall reimbursement rate: 41%
Ms. Swanson also included a slide showing the cost to taxpayers by year….
For a typical $350,000 home, the estimated tax increase per year is projected to be as follows:
FY11: $11; FY12: $65; FY13: $150; FY14: $580; FY15: $567; FY16: $557; FY17: $546
The average tax increase for a typical $350,000 home over 25 years is projected to be $450/year which translates to a mil rate of $1.28/$1000.
One of the comments made during Ms. Swanson's presentation was that the projected tax increase for town residents for the first three years FY11, FY12 and FY13 is pretty low as shown above. It is not until FY14 that a significant tax increase shows up which is due to the fact that this is a construction type loan and construction is not expected to be completed until Sept 2013. It is interesting to note that the mil rate impact in FY14 is 1.66/$1000 or $580 which is significantly higher than the average over the 25 year bond period.
Ray McCarthy, a town resident commented (see short video clip below) that the committee should not sell this building project based upon the low upfront tax impact but it should make sure that town residents understand the significant long term impact on their taxes. I definitely support Mr. McCarthy's recommendation in this regard.
I disagree with a comment made by SBC co-chair Mr. Barkett during this meeting. He stated that some of our debt from other capital projects will be maturing over time reducing the town's outstanding debt obligations and therefore mitigating some of the high school project tax burden. With all of the potential future capital projects that our town may need in the near future including a new DPW facility, water/ sewer upgrades, we should not count on the town's overall outstanding debt disappearing anytime soon.
Stay tuned to LongmeadowBuzz for further developments on this important project.
A press release from the SBC released yesterday is also available.
Below is a short video clip (9 min) from this meeting with Christine Swanson, SBC co-chair summarizing the financial aspects of the project.
The key highlights for the project include:
Total cost: $78,452,888
State reimbursement: $32,310,867
Town Cost: $46,142,020
Overall reimbursement rate: 41%
Ms. Swanson also included a slide showing the cost to taxpayers by year….
For a typical $350,000 home, the estimated tax increase per year is projected to be as follows:
FY11: $11; FY12: $65; FY13: $150; FY14: $580; FY15: $567; FY16: $557; FY17: $546
The average tax increase for a typical $350,000 home over 25 years is projected to be $450/year which translates to a mil rate of $1.28/$1000.
One of the comments made during Ms. Swanson's presentation was that the projected tax increase for town residents for the first three years FY11, FY12 and FY13 is pretty low as shown above. It is not until FY14 that a significant tax increase shows up which is due to the fact that this is a construction type loan and construction is not expected to be completed until Sept 2013. It is interesting to note that the mil rate impact in FY14 is 1.66/$1000 or $580 which is significantly higher than the average over the 25 year bond period.
Ray McCarthy, a town resident commented (see short video clip below) that the committee should not sell this building project based upon the low upfront tax impact but it should make sure that town residents understand the significant long term impact on their taxes. I definitely support Mr. McCarthy's recommendation in this regard.
I disagree with a comment made by SBC co-chair Mr. Barkett during this meeting. He stated that some of our debt from other capital projects will be maturing over time reducing the town's outstanding debt obligations and therefore mitigating some of the high school project tax burden. With all of the potential future capital projects that our town may need in the near future including a new DPW facility, water/ sewer upgrades, we should not count on the town's overall outstanding debt disappearing anytime soon.
Stay tuned to LongmeadowBuzz for further developments on this important project.
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