July 23, 2014 at 2:10 p.m.
Restraint urged on SA project (03/07/07)
South Adams School Board
By By JACK RONALD-
BERNE - South Adams School Board members agreed Tuesday to move forward with building new elementary and middle school facilities and renovating the high school, but not before hearing from taxpayers who urged that the project be scaled back.
"We're not here for bells and whistles," superintendent Cathy Egolf told about 150 people on hand for a public hearing in the auditorium of South Adams High School. "We're here for sound education for the future."
As outlined Tuesday night, the construction project could cost as much as $35 million and add more than 66 cents per $100 assessed valuation to the property tax rate.
But school board members said they hoped the final pricetag would be significantly less.
"We really believe we can be a lot lower," board president Tony Mellenkamp said.
"I want to remain very conservative, because I think we need to divide the needs and the wants," said board member Arlene Amstutz.
The project calls for construction of new space for kindergarten through grade 8 in a facility that would be connected to the existing high school in Berne.
That classroom space would replace the current elementary school in Berne and the current middle school in Geneva.
As outlined by Dan Rawlins of InterDesign, Indianapolis, the new K-8 facility would be connected with the high school and would share a common cafeteria and food service area. Two new gymnasiums would be constructed to replace those at the current elementary and middle schools.
Based upon the state's maximum allowable square foot cost, Rawlins estimates the new construction would total $21,418,000.
But board members believe that by using a design-build process that figure could be significantly scaled back, perhaps by as much as 20 percent.
In addition, another $4,582,000 would be spent on remodeling the current high school building, focusing on ending the open concept aspect of the present classroom space. The swimming pool would also be remodeled to bring it up to current standards in terms of depth, but it would remain a six-lane pool.
The remodeling portion of the project would be done on a more traditional design-bid-build process.
Another $950,000 is estimated in demolition costs, $206,500 in finance costs, "soft" costs such as architectural fees of $4,499,125, bond insurance of $442,990, and interest over a 20-year period of $1,901,385.
Curt Pletcher of the accounting firm H.J. Umbaugh and Associates, Indianapolis, said his projections are based upon an assumed interest rate on bonds of 5.25 percent, while the actual figure may be lower.
"We're looking at maximum parameters," said Pletcher. "You're looking at the worst case scenario."
Pletcher's estimates on the potential tax impact drew sharp reactions from some at Tuesday's hearing.
If the project were to cost the full $35 million, he estimated a maximum net tax impact of 66.63 cents per $100 assessed valuation on the tax rate.
That would translate into an additional $17.77 per month in property taxes on a home with an assessed valuation of $70,000. On a home with an assessed valuation of $150,000, the impact would be $62.19 per month, Pletcher said.
For farmland assessed at $1,140 per acre, the impact would be $7.60 per acre annually. For farmland assessed at $1,357 per acre, the impact would be $9.04 per acre annually.
"How do you expect people who are on budgets to pay for this at all?" asked South Adams school patron Jim Meshberger. "You're starting to tax people pretty darned heavy."
"I know that excellence is good," added area resident Jill Moser. "But sometimes the financial burden on the families can be a detriment to their education."
"This adds an enormous burden on us farmers," said Janet Lehman.
Board members shared those concerns.
"I've very concerned about the tax rate," said board member Steve Hampshire, who is Geneva town manager. "But we don't have a choice. We've got to do something."
Many people on hand for Tuesday's hearing - particularly teachers and parents - spoke enthusiastically in support of the project. Several cited the deteriorating condition at the middle school, where climate control and falling plaster are ongoing issues.
"The school is crumbling around our children," middle school teacher Melissa Beitler told the board.
Even those who expressed concern about the tax burden acknowledged that something needs to be done.
"I do favor a new school," said Adams County Council member Matt Lehman. "I have some concerns on the funding. There are some things within the project that are more desires than needs."
As a result of Tuesday's vote by the board, public notice advertisements will be placed Friday in the Decatur Daily Democrat and the Berne Tri-Weekly News. That will initiate a 30-day period during which opponents to the project could mount a remonstrance petition drive against it.
If no remonstrance occurs, the construction bonds could be sold on July 31.[[In-content Ad]]
"We're not here for bells and whistles," superintendent Cathy Egolf told about 150 people on hand for a public hearing in the auditorium of South Adams High School. "We're here for sound education for the future."
As outlined Tuesday night, the construction project could cost as much as $35 million and add more than 66 cents per $100 assessed valuation to the property tax rate.
But school board members said they hoped the final pricetag would be significantly less.
"We really believe we can be a lot lower," board president Tony Mellenkamp said.
"I want to remain very conservative, because I think we need to divide the needs and the wants," said board member Arlene Amstutz.
The project calls for construction of new space for kindergarten through grade 8 in a facility that would be connected to the existing high school in Berne.
That classroom space would replace the current elementary school in Berne and the current middle school in Geneva.
As outlined by Dan Rawlins of InterDesign, Indianapolis, the new K-8 facility would be connected with the high school and would share a common cafeteria and food service area. Two new gymnasiums would be constructed to replace those at the current elementary and middle schools.
Based upon the state's maximum allowable square foot cost, Rawlins estimates the new construction would total $21,418,000.
But board members believe that by using a design-build process that figure could be significantly scaled back, perhaps by as much as 20 percent.
In addition, another $4,582,000 would be spent on remodeling the current high school building, focusing on ending the open concept aspect of the present classroom space. The swimming pool would also be remodeled to bring it up to current standards in terms of depth, but it would remain a six-lane pool.
The remodeling portion of the project would be done on a more traditional design-bid-build process.
Another $950,000 is estimated in demolition costs, $206,500 in finance costs, "soft" costs such as architectural fees of $4,499,125, bond insurance of $442,990, and interest over a 20-year period of $1,901,385.
Curt Pletcher of the accounting firm H.J. Umbaugh and Associates, Indianapolis, said his projections are based upon an assumed interest rate on bonds of 5.25 percent, while the actual figure may be lower.
"We're looking at maximum parameters," said Pletcher. "You're looking at the worst case scenario."
Pletcher's estimates on the potential tax impact drew sharp reactions from some at Tuesday's hearing.
If the project were to cost the full $35 million, he estimated a maximum net tax impact of 66.63 cents per $100 assessed valuation on the tax rate.
That would translate into an additional $17.77 per month in property taxes on a home with an assessed valuation of $70,000. On a home with an assessed valuation of $150,000, the impact would be $62.19 per month, Pletcher said.
For farmland assessed at $1,140 per acre, the impact would be $7.60 per acre annually. For farmland assessed at $1,357 per acre, the impact would be $9.04 per acre annually.
"How do you expect people who are on budgets to pay for this at all?" asked South Adams school patron Jim Meshberger. "You're starting to tax people pretty darned heavy."
"I know that excellence is good," added area resident Jill Moser. "But sometimes the financial burden on the families can be a detriment to their education."
"This adds an enormous burden on us farmers," said Janet Lehman.
Board members shared those concerns.
"I've very concerned about the tax rate," said board member Steve Hampshire, who is Geneva town manager. "But we don't have a choice. We've got to do something."
Many people on hand for Tuesday's hearing - particularly teachers and parents - spoke enthusiastically in support of the project. Several cited the deteriorating condition at the middle school, where climate control and falling plaster are ongoing issues.
"The school is crumbling around our children," middle school teacher Melissa Beitler told the board.
Even those who expressed concern about the tax burden acknowledged that something needs to be done.
"I do favor a new school," said Adams County Council member Matt Lehman. "I have some concerns on the funding. There are some things within the project that are more desires than needs."
As a result of Tuesday's vote by the board, public notice advertisements will be placed Friday in the Decatur Daily Democrat and the Berne Tri-Weekly News. That will initiate a 30-day period during which opponents to the project could mount a remonstrance petition drive against it.
If no remonstrance occurs, the construction bonds could be sold on July 31.[[In-content Ad]]
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