Raymond Voter Information Project
Article 6
Capital Improvement Plan (CIP)
Text of 2011 School Warrant Article 6
This article proposes to raise $195,000 for two School District Capital Reserve Funds (CRFs) to support the School’s Capital Improvement Plan (CIP). A CRF is a savings account for scheduled CIP purchases and/or repairs that exceed $10,000 and have a five year or longer life span. The 2011-12 CIP plan allocates $166,000 for maintenance/replacement of buildings and grounds, and $29,000 for technology. No funds are requested for the food service equipment or textbook CRFs. Tax cost: $.195 per thousand of tax valuation.1
A YES vote raises $195,000 to fund two CRFs in the Capital Improvement Plan.
A NO vote raises no money to fund CRFs in the CIP this year.
Reasons why some voters might vote yes:
- Saving gradually can help avoid spikes in the tax rate that could occur if the total cost of necessary purchases and/or repairs had to be paid in one year.
- Funding a Capital Improvement Plan gives towns the authority to collect school impact fees from developers ($1,469 for an apartment, up to $3,369 for a single family home) that can be used to fund school capital needs.2 Since the School CIP was not funded last year, allowing the CIP to go a second year without funding risks mandatory reduction or elimination of school impact fees during the annual impact fee review.
- Bond payments not paid by impact fees must be paid by taxes. Impact fees saved the taxpayers $47,932 in 2010 and $92,314 in 2009 and helped pay the Iber Holmes Gove Middle School bond.3
Reasons why some voters might vote no:
- High cost items can be financed as they are needed with a voter approved bond.
- Projects should be bonded (borrowed) and paid for as a project is built and used, rather than saving prior to building.
References:
- Ron Brickett, SAU33 Business Administrator
- Bruce Mayberry, Impact fee consultant
- Ron Brickett, SAU33 Business Administrator
Please send questions/comments to editor@raymondvip.org
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