On May 5 and 8 there are literally only two options: Vote yes, build new, and get an $18.6 million grant from the state, or vote no and turn down the grant. If we vote no, we are out of the Massachusetts School Building Authority (MSBA) process. We can reapply, but we have no guarantee that we will get approved again, and in what time frame. Harvard applied for the MSBA grant five times in eight years before we were accepted (2008, 2009, 2010, 2011, 2015). After acceptance, the process takes about three years to get to where we are today.
Every year adds 3 percent inflation to current estimates. In addition, interest rates are going up. The Federal Reserve has indicated it will continue to raise rates. The new school’s bond is expected to be locked in at an interest rate of 4.25 percent, according to bond counsel. A delay of even one to two years would mean a significantly higher interest rate, likely 5 percent or higher. The new school’s impact will be an 11 percent increase in property taxes, according to the latest figures.
The estimate a year ago for a bare minimum renovation for Hildreth Elementary School was $28 million. Add a year of inflation and a higher interest rate, and the tax increase would be 10 percent—for a 30-year-old building that still gets ice dams and has had no education upgrades.
Voting no would mean choosing between two bad options: push forward with a renovation without MSBA funds, or reapply to the MSBA and wait. The former means we’d foot the bill without any help from the state. The latter means we have no guarantee of being reaccepted, and every year we’re rejected, we watch as inflation and interest rates go up, making the exact same project more expensive.
Lincoln voted down their MSBA project with a town cost of $28 million (and a $21 million reimbursement). They reapplied unsuccessfully three times (2013, 2015, 2016) and now must move forward without state help, with project options listed between $45 million and $95 million. Let’s not make the same mistake.
Jennifer Finch
Codman Hill Road
