What are the Financial Details?
The maximum cost of the project, if both propositions are approved, is $11,855,000. This cost includes conservative contingencies for different things, such as asbestos abatement, that may not come to fruition. That being said, we believe that the final cost may in fact be less, and it is our goal to complete the needed work at the lowest possible cost to our taxpayers. This cost will be offset by $3,000,000 that the district has saved through a combination of Capital Reserve and budgeted funds. The district would bond for the remainder of the cost at a maximum of $8,755,000. Any money that is borrowed will be bonded over a 15 year term to coincide with New York State Building Aid that will reimburse the district for approximately 45% of the cost including principal and interest. New Lebanon will also utilize $288,073 of Smart Schools Funding from New York State to additionally reduce costs. Because any new debt would replace existing debt that we will be paying off, there will be no additional cost to taxpayers. This approach aligns with our long term financial goal to maintain or reduce costs to our taxpayers.
Why do we have to vote on these propositions if the Board has already approved this work?
The District is required by law to have voter approval for any project that requires the borrowing of funds.
What happens if bids for the renovation project come to more than $11,855,000?
As with any project proposal that voters approve, the Board of Education can only spend up to the specific amount approved by voters. If renovation bids are higher than estimated, the district would scale back the scope of work in the project to stay within the authorized amount.
What happens if the 2nd proposition doesn’t pass, can the 3rd proposition pass?
No. Proposition 3 is contingent on Proposition 2 passing.
What happens if the 3rd proposition doesn’t pass, can the 2nd proposition pass?
Yes, If Proposition 3 doesn’t pass and Proposition 2 passes, the work for Proposition 2 can be completed.
How does the Renovation Project affect the school budget for the 2017-18 school year?
Simply put, it doesn’t. If the project is passed, the work will be done and it will have no impact on the school budget.