MINUTES OF MEETING

Facilities and Capital Improvement Committee
(jointly with Budget Advisory Committee)

January 7, 2008

Present: Charles Hutchinson, Michael Pavlovich, Gerardo Tagliaferri, Joanne Simpson, Joe Kolanda, Julia S. Bowers, Elizabeth Finch, Don Blenco, Jerry Derrick, Jack Bell, Jim Marean, Brian Horton, Gerald Abbey, Mark Bordeau, John Gage, Janice Young, Mary Rader, Jim Hull; from Bearsch Compeau Knudson: Mrs. Goff, Mr. Costello; from Fiscal Advisors: Ben Maslona.

* Mr. Abbey welcomes those present. Copies of minutes of December 10, 2007 meeting are distributed.

* Mr. Abbey introduces Ben Maslona from Fiscal Advisors, who presents information on debt limit, building aid exclusions, maximum cost allowance and potential tax impact of district capital project

> Debt limit is defined as maximum amount of debt a municipality or school district can have outstanding; that figure changes every year and is paid down each year in the district's budget.

> Handouts are distributed providing information on valuations, full valuations: debt limit is directly tied to these figures.

> If a capital project vote were held in the spring, the first borrowing would not occur until 2010.

> SV's building aid ratio is 90.6%.

> "Clock starts to tick" at NYSED approval of project – aid starts coming 18 months later.

* Mrs. Goff joins Maslona presentation, discussing "building aid units." BCK was asked at last meeting to determine maximum cost allowance figures currently on file at NYSED:

> SV H.S.: $11.7 million; Ind. Arts Bldg.: $400,000; RTS M.S.: $9.3 million; Brookside: $5.5 million; Donnelly: $5.3 million; (Cedarhurst: $8 million) for a total of approximately $40 million (including Ced.).

> HOWEVER, if Cedarhurst is used to teach children during any renovations at Donnelly and/or Brookside, the district may have to submit a project at Cedarhurst to NYSED, triggering re-calculation of cost allowances. Numbers on file now at SED bring bigger cost allowances than would exist with a recalculation spurred by a Cedarhurst project. Simple repairs at Cedarhurst would not trigger such a recalculation.

* Mr. Maslona explains information on "tax impact" handouts: summary page and schedules A through F. The schedules provide scenarios ranging from a project of $10 million to a project of $32.4 million and assume a 90-95% bond percent (aidability). Each project applies a "down payment" of $676,811 in EXCEL aid and uses the district's current building aid ratio of 90.6%.

* Member asks about doing renovation work on existing facilities and how that would stack up on aidability. This prompts discussion on what the state considers to be "aidable" work.

* BCK reps provide update: over the holidays did walk-throughs at elementary schools. Need to consider "programming issues" to identify future building needs at elementary schools. BCK will have new numbers on the cost of elementary school work at next meeting.

* Group discussion regarding tax impact/burden. Would like to maintain a modest, level increase. Need to be able to show a project is more affordable because the district is retiring debt on a regular basis.

* Group discusses making sure a new consolidated elementary building is not feasible before ruling it out.

* BCK says new numbers on elem. schools will be ready within 5-6 weeks; programming needs will take additional time.

* Member praises BCK's work: as figures have come in, projects have changed, and BCK has done a great job in going back to the drawing board and doing what has been asked of them.

* Discussion regarding timeline and scope of project: previous (1998) capital project took a great deal of time to get going: it doesn't happen overnight. Concern expressed that any project be balanced between secondary campus and elementary buildings.

* BCK: just because you have a cost allowance figure at a building doesn't mean you spend up to that amount. Must consider taxpayer tolerance. Building aid units don't change unless there's a change in the building "footprint" (an addition, e.g.).

Next Facilities and Capital Improvement Committee meeting will be held jointly with Finance Committee February 11, 2008, 6:30 p.m.