JOINT SESSION

 

OCTOBER 24, 2023

 

 

At a JOINT SESSION of the Town Council, School Committee and School Building Committee of the Town of South Kingstown, County of Washington, in the State of Rhode Island held at the Town Hall, in and for said Town on the 24^th day of October 2023 at 6:03 PM.

 

            PRESENT:      Town Council

Rory H. McEntee, President

Michael K. Marran, Vice President

Patricia A. Alley

Deborah D. Bergner

 

School Committee

Paula J. Whitford, Chair

Michelle Brousseau, Vice Chair

Melissa A. Boyd

Katherine M. Macinanti

James L. Restivo

Bradley M. Shear

Carol A. Vetter

 

School Building Committee

Katherine Macinanti, Chair, School Committee member

Brian Mahoney, Vice Chair, School Facilities Superintendent

Robert E. Littlefield, Interim School Superintendent

Terry Lynch, Educational and Function of Facilities member

James M. Manni, Town Manager

Lucas Murray, Deputy Town Manager

David Palazzetti, Community Member

Brian Silvia, Town Finance Director

 

 

1.         A.        PLEDGE OF ALLEGIANCE TO THE FLAG

 

The Pledge of Allegiance to the flag is given.

 

B.        LAND ACKNOWLEDGEMENT STATEMENT

 

The Land Acknowledgement Statement is read.

 

2.         ROLL CALL

 

Roll Call of the Town Council is taken and four members are present. Councilwoman Jessica L. Rose is absent.

 

Roll Call of the School Committee is taken and six members are present; Ms. Macinanti arrives at 6:08 PM.

 

Roll Call of the School Building Committee is taken and seven members are present; Ms. Macinanti arrives at 6:08 PM. Chip McGair, School Principal is absent.

 

3.         Chris Spiegel, Senior Project Manager, LeftField Project Management, the Town’s Owner Project Manager (OPM) presents the new estimates for the school facilities project budget.

Hard costs are projected at $117,454,875 and soft costs are projected at $15,933,207 for a sub total of $133,388,082. Escalation costs are estimated at $10,368,963, plus contingencies at $10,062,993 for a total project cost of $153,820,038. Mr. Spiegel reviews the difference between hard costs such as demolition, sitework, utility service and new construction, and soft costs such as design services, engineering, project management, furniture and fixtures, and technology. A commissioning agent is required by the RI Department of Education (RIDE) and is budgeted at $250,000.

 

Matt McBurney, construction project manager notes that the midpoint of construction would be early 2026, and that contingencies have to be treated as part of the budget.

 

Discussion ensues relative to estimating, escalation costs and contingencies.

 

Phil Conte, Studio JAED Architects notes that the design of the building has been reduced by 5,000 square feet, they found efficiencies in the layout, reduced classroom size, and reduced the auditorium space. Mr. Conte presents the concept design of the new building. The current plan is the most compact version, provides screening from neighbors and identifies parking areas and bus drop off locations.

 

Discussion ensues relative to programmatic planning.

 

Mr. Spiegel notes that the demolition costs have been raised from $1 million to $5 million. Contractors will be required to submit detailed plans regarding the effect on the local area.

 

4.         James Manni, Town Manager gives a brief executive summary and notes the presentation prepared by Brian Silvia, Finance Director details the projected fiscal impact.

The interest rate for a $150 million school bond amortized for 20 years is now up to 4%, and 4.5% for a 30 year note. With a 20 year bond, the tax rate increase for the bond would be 91¢ over a 5 year period, or an 8.33% tax levy increase. The Town’s annual growth rate averages 1.66%. For the average home valued at $468,000, taxes would increase by $426 per year.  With a 30 year bond the tax rate would increase 75¢ and the levy change would be 7.02%. The average home taxes would increase by $354 per year.

 

Brian Silvia, Finance Director notes that the rating agency recommends borrowing on a 20 year bond at a 4% interest rate.  Mr. Silvia reviews the differences in state reimbursement and total payments over a 20 year and a 30 year bond period, and notes that some communities have recently chosen 30 year bonds. Additional debt payments over a 30 year bond period would be $40 million. 

 

The Town has very little debt, and it is getting retired. FY2030 is the high water mark, with debt service beginning to decrease in FY2031. Mr. Silvia reviews the projected impacts on property taxes based on a $150 million school bond for a 20 year and a 30 year plan.  Tax levy growth is expected at 1.67% annually. The FY2026 and FY2029 property revaluations are not built into the tax rate projections.  The net assessed value of the Town as of December 31, 2022 is $6,899,764,199. At a 3% debt limit the Town could bond up to $206,992,926, leaving about $50 million available for other projects.

 

Mr. Silvia reviews the assumptions that include state reimbursement rate of 52.5% on applicable expenses, bond issuance in FY2028, annual growth of the Town’s tax base, and use of the Debt Service Reserve Funds. The projected impacts on taxes are based on the bond costs and anticipated growth for Town operations.  

 

Discussion ensues.

 

5.         Robert Littlefield, Interim School Superintendent discusses the school and Town relationship and requests for school information.

School data on enrollment and FTEs are provided in the packet distributed this evening.  Enrollment decrease is projected to level off. Mr. Littlefield reviews the chart listing the number of FTEs in each category and method of funding. The School department is preparing data to identify costs for each employee. Mr. Littlefield discusses grant funded positions and the expiration of ESSER funding.

 

6.         The Interim School Superintendent discusses the current school budget and any surplus fund balances.

There are $3.5 million in unspent grant funds carried over to FY2024. The predicted total surplus is $915,746, it is planned to transfer $621,586 to the capital fund leaving a net surplus of $294,160 for the fiscal year. The School Committee aspires to have a 2-3% budget surplus.  

 

7.         Mr. Littlefield reviews the actual cost savings from the closure of Curtis Corner Middle School and Wakefield Elementary School.

Approximate savings in personnel and operational costs amount to $1,530,819.50. Contractual personnel costs increased 2% and health care increased 9%. School Committee member James Restivo notes that the School Committee used the cost savings to limit their budget request to level funding in FY2023.

 

8.         Discussion ensues regarding the support for construction of a new high school facility and appreciation for the efforts of all involved this evening.

Discussion ensues regarding the deadline for the Town Council to make a decision on the school bond amount and report it to RIDE by Thanksgiving. It is consensus to place this on the Town Council agenda for the first meeting in November. New bond legislation will have to be submitted to the General Assembly. Discussion ensues regarding the need to move forward with this project.

 

9.         PUBLIC COMMENTS

 

Katie Garvin speaks in support of the new high school facilities project.

 

James O’Neill comments on bond rates and cost savings from school closures.

 

John Majeika comments on deed restrictions on the high school property and the cost of the project.

 

Maggie Martin comments on construction costs and potential consolidation of schools.

 

Andrew O’Brien comments that the Town hired professionals to design this project and should listen to them and make a decision.

 

Brett Harrington comments in support of a new high school.

 

Dorald Beasley comments on the School Building Authority’s cost allowance per square foot, reimbursement rates, enrollment declines and per pupil funding.

 

Jennifer Long expresses concern with taxes, and reasons why students leave the district.

Fil Eden comments on smart growth, expanding the tax base and the need for a new school.

 

Mike Gagas comments that taxes here are comparatively low, good schools equal better property values, the best investment is in schools.

 

Debra MacDowell comments that her family moved here for a good education, the building is not the issue, educational standings have declined.

 

UNANIMOUSLY VOTED:  to adjourn at 8:50 PM.

 

 

Susan M. Flynn, CMC

Town Clerk