Plain Talk
Questions and Answers about the December 8 Bond Vote
(Note: these questions will be continually updated! If you have a question about the project that you would like to be personally answered, please email Structured4Success@nscsd.org and it will be routed to the appropriate individual).
1. Why is the District proposing a large bond issue, rather than paying for school improvements through the annual budget?
Managing the facility needs of our school district is no different than managing the needs of your home, except on a much larger scale. For most people, investing in home renovations requires getting a home equity loan or saving up for a period of time. Our position is the same. School building improvements are costly and cannot be funded out of the annual budget. Using a bond, like a home equity loans, spreads the cost over a long period of time and achieves two goals: it allows the work to be completed in a relatively short period of time while receiving State Aid payments over the life of the bond to pay the District’s debt.
2. How come school construction is costly?
Because these are large facilities with significant State Education Department code requirements. Recall that thousands of students and staff use these facilities on a daily basis. The use and wear and tear of these buildings is extraordinary, and the facilities thus are designed and constructed in a way that is much more costly than residential construction.
3. How is construction pricing determined?
All public works projects like this are publicly bid and awarded to the lowest responsible bidder through multiple contracts, some of which are required by law to be split out (for example electrical or plumbing) and others that are covered under a general construction contract. Our architects and construction managers build a budget that reflects the regional cost of school construction and makes reasonable assumptions for project contingencies, the time frame for construction, general conditions, and fees.
4. What are the requirements for project labor?
Under NYS law, all workers on the project must be paid the ‘prevailing wage’ for contractual association with the district. Under the law, school construction projects can be awarded to both union and non-union firms. The school district’s obligation is to award to the lowest responsible bidder.
5. How did the District determine the composition of this project?
Every five years, the district must submit a Building Condition Survey (BCS) to the State Education Department. This survey, conducted by our architects, identifies and rates the condition of the facilities, thus providing a general timeline for addressing them. For the first proposition (C-NS High School, Cicero Elementary School, Lakeshore Road Elementary School, Smith Road Elementary School) all of the work that will be addressed represents the top-level facility priorities of the North Syracuse School District as determined by design and construction professionals.
6. This means that there is other work that will be addressed in the future?
Yes. Realistically, school buildings will always require investment along the life cycle of their use. For example, a school building that is decades old will have integrated systems (i.e. electrical, plumbing, roofing, windows, lighting) that will require upgrade or replacement. And as technology evolves and the requirements of teaching and learning change, schools will require reconstruction. The current KWS Bear Road Elementary School reconstruction is a good example of this. Classrooms and common areas are being reconfigured and updated to reflect today’s needs, which are much different from when the building was constructed decades ago.
7. Why not simply put all of the District’s needs into one big project and get it all done at once?
It would be wonderful to have all of our needs met at once, but it simply cannot happen for two reasons: first, the District could not complete this construction within the proscribed timelines of the state for reimbursement, thus the project would be exceedingly expensive, and practically speaking, unaffordable. And second, we have to use our existing facilities that are not under construction for student and staff swing space while we work on the buildings.
8. How will the construction schedule be determined?
If the project is approved in December, we will petition the State Education Department for fast-track approval of the HVAC work at the high school so that it can be done in the summer of 2022. That’s because our engineers have determined that the system, which is original to the building, is at an acute stage of replacement need. The renovations to the other buildings will be designed and approved during the 2022-23 school year and construction is likely to begin in the summer of 2023 and extend over two or more years.
9. What will the impact to students and staff be?
As with the current KWS Bear Road Elementary School project, the work at the elementary schools will require swing space for construction (meaning that a portion of the students would have to be (most likely) temporarily relocated at another District building. There should be no displacement of students at the high school, as the renovation work of the gym, locker rooms and auditorium will largely take place while school is out of session.
10. How is it possible to do $64.95 million of construction without increasing taxes?
It’s all about the timing of the construction, State Education Department rules, and the district’s reserve funds. Under the rules for state aid reimbursement, we can spend a certain amount (determined by the state) every five years. If we exceed this amount, we do not receive State Aid on that portion. Therefore, we can only get close to our maximum reimbursement of 85% if we limit our spending to the State’s formula. This simply means that our timeline for making improvements will be extended in the future. But on the flip side, the vast majority of the cost is paid for by the State. The remaining share becomes our District’s obligation. But because we are retiring old bonds, and because we have prudently saved money in reserves in recent years, we can pay for this difference WITHOUT increasing the tax rate.
11. The community pool project at the HS does carry a small tax increase. How come?
This is largely due to the fact that a project like this is aided by the State at a much lower level (in this case, State Aid for the community pool project will be about 19% of the total cost). Fortunately, we have received a $2 million State grant through the efforts of Assemblyman Al Stirpe, and we have on-hand reserves of $2 million to apply to the project.
12. Why is the District asking voters to create a capital reserve fund?
Our outside financial advisors believe that creation of this fund, which is controlled by voters and can only be used to address future school projects, will help limit or eliminate the need for future tax increases associated with school bonds. Here’s how it works: if voters approve the creation of the fund, the Board has authorization to take unspent budget funding at the end of the year and place it into this account. Essentially, it is a savings account, but it can only be used for school construction, and only with the future authorization of voters. Having a capital reserve also helps the overall financial health of the District, as ratings agencies will rate the district’s financial condition more favorably, thus lowering our future interest costs.
13. What can we expect in the future in terms of facility projects?
In general, the District will continue to invest in its schools to reflect the highest-priority needs. Similar projects to replace building systems and address teaching and learning needs will be proposed. There is no such thing as an ‘end of the road’ when it comes to school facility improvement. These are community assets that we must regularly invest in to maintain safe, modern, and effective teaching and learning environments.
14. Speaking of teaching and learning, how does this project will improve the experiences of students and staff?
There are multiple ways to look at the benefits of these kind of improvement projects. Let’s start with safety and security. These are public school buildings used by thousands of people each day. Safety and security – through improved ventilation, fire alarm systems, secure windows and doors, secure entryways, safer bleacher systems, safer curbing/sidewalks, etc. are the obvious examples of our commitment to each individual who enters our campuses. Instructionally, we can look at how vastly improved common areas, the integration of technology, and the reconfiguration of classrooms and classroom furniture completely change and improve the learning experience. There’s no better example than the comparison to the modern workplace. If you work in an office that hasn’t changed much since its construction more than 50 years ago, you immediately recognize the limitations and challenges of the facility. Conversely, if you work in a modern facility, you know how your workplace stimulates thinking, creativity, and collaboration.
15. Will the Community Pool be open to the public?
Yes, it is our intention that the pool would be available for community use. We have asked our architects to design the facility with dedicated locker rooms and separate entrances. However, we have not worked out any of the details regarding how community use will work and what fees if any will be associated with its use by the community. If the voters approve this referendum, we will begin to work on these details and share information as it becomes available.