Introduction

In the Spring of 1995, the Vision 2020 / Fiscal Resources Task Group (FRTG) published a report on the funding of the school renovation project. Since that time, the renovations to the Ottoson Middle School have been completed, and three elementary schools are on the list for partial state funding through the School Building Assistance Program. And, in March of this year, Arlington's voters will be asked whether or not to approve a debt exclusion override of the Proposition 2½  property tax limiting statutes in order to provide funding for renovations to three of the seven elementary schools.

In this report, we try to answer this question "How much will the school renovation project cost me" for the proposal to be decided by the voters on March 7, 1998. In addition, we use updated cost estimates for the elementary schools that include the costs of furnishings, technology infrastructure, and contingency planning. This updated report reviews the key assumptions about the scope of the project, the cost of the project, and the funding of the project, and provides revised spreadsheets of data for reference.

Table of Contents
Introduction
Scope of the Project
Project Cost Assumptions
Project Funding Assumptions
Property Tax Impact
Acknowledgments, Sources, For More Information


Scope of the Project
The elementary school renovation project includes all seven elementary schools in Arlington. However, in response to the outcome of the vote in June of 1997, various officials and leaders in Arlington decided to split this project into two phases, each requiring voter approval. The vote in March of 1998 is for the first phase, including the Brackett, Bishop and Hardy schools.

The school renovations were originally documented in the School Facility Master Plan Study by the architectural firm of Strekalovsky & Hoit, Inc. Since then, detailed architectural plans have been developed for the Brackett, Hardy and Bishop schools. The project also includes additional plans, prepared by the Superintendent of Schools, for building a technology infrastructure into each of the schools. The Superintendent also added contingency fund plans as required by the state.

Project Cost Assumptions

1. Renovation costs are provided by the Superintendent of Schools, based on the report of an independent estimating form.
   
2. The project starts in 1998 with the reconstruction of the Brackett school, followed by the Bishop school in 1999, and the Hardy school in 2000.
   
3. Inflation increases construction costs 2.31% per year. Construction costs are estimated in today's dollars. It is likely that inflation will affect these estimates over the life of the project, so the project costs were "inflated" based on historical construction costs in Boston.
   

1. 63% state reimbursement for all schools
   The Brackett, Hardy and Bishop schools have already been approve by the State for 63% reimbursement. The 63% reimbursement applies to the principal and interest costs of the bonds.
   
2. 20-year bonds issued at 5.25%
   The schedule for bonding will be determined by the Treasurer.
   
3. Interest on bonds is used to reduce property tax impact
   Following a vote by Town Meeting in fall of 1997, all interest income from the construction bonds will be earmarked to reduce the impact of this project on property taxes.
   
4. The total valuation of all property in Arlington is $2,815,373,412 in Fiscal Year 1997
   
5. Bonds funded by property tax Debt Exclusion
   FRTG determined that a debt exclusion override is the only funding option that would raise enough money to pay for the bonds required by the project as described in this report.
   

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