Home / District / HFCS Capital Project Vote Q&A – Your questions answered

HFCS Capital Project Vote Q&A – Your questions answered
 

What are your questions?

If you have a question regarding the capital project, please email it to keeganm@hoosickfallscsd.org. We will do our best to respond to your question in a timely manner. Some questions & answers may be posted if they will serve as helpful information for the community. Below are questions that were submitted by residents.

Q: What percentage is the tax payer going to be expected to pay? And if money has been set aside can it only be used for a capital project and is it enough to pay outright for the most important upgrades… i.e. The heating system?
A: Taxpayers are expected to pay 17.6% of the costs. The project will be bonded so interest will have to be paid as well. By applying up to 4.6 million in capital reserve funds and with an annual energy savings of 40,000 per year the total costs for taxpayers will be approximately 1.9 million dollars.

 

Q: Can proposition 1 pass without proposition 2?
A: Yes, however proposition 2 cannot pass without 1.

 

Q: What are the emergency projects which must be addressed? What is that cost?
A: The removal and replacement of asbestos containing ceiling tiles and the boiler system for a cost of over $10 million.

 

Q: 82.4% of $22,045,820 is $18,165,755. 22,045,820-18,165,755= 3,880,065. If $4.6 million in district reserve funds will help offset the taxpayer share, why is there any increase to each taxpayer?
A: Interest has to be paid which makes the local share 6.7 million which is then offset by the $4.6 million in reserve funds and $1 million in energy savings.

 

Q: Does temperature control system building-wide mean air conditioning for the entire school?
A: No the system does not include air condition, it is for heating only.

 

Q: Did the voters approve a previous capital improvement project for transportation? If so, what additional cost is that for every taxpayer and for how long?
A: No, the voters approved the purchase of buses from reserve funds which were no additional costs to tax payers.

 

Q: What would the approximate percentage increase be for a household in the area?
A: House value of $50,000: .01% increase; House value of $100,000: .02% increase; House value of $150,000: .03% increase

 

Q: Does the school have money in hand from the state to cover the 82.4%?
A: As this is a 15 year aidable project, the state will pay approximately $1,466,541 each year over 15 years. 

 

Q: Will the currently projected NYS budget deficit (2-3 billion dollars) have a negative impact on the current HFCS budget regarding  “normal” state aid or next years budget? What impact will the NYS deficit have on the proposed Capital Project.
A: The NYS deficit and budget has no impact on the Capital Project. Building aid is part of the education law and the rates are set. They cannot be changed without changes being made to the law. 

 

Q: If the district share of the project is less than the school’s reserve funds on $4.6 million on hand, why is there any cost to the taxpayer?

A: There will be a minimal cost to taxpayers because this will be a bonded project, as most every school capital project is. A bond is necessary because the state aid comes to us over a period of 15 years.

School bonds work like home or car loans. The school barrows the money up front and has to pay it back over time. Bonds are usually used to fund capital improvement projects like updating the heating system. Bonds have to be repaid with interest. The interest rate, and therefore the total cost of the bond, varies according to the interest rate.

The work items will cost approximately $22 million, but with interest the project will be estimated at $28,552,675. So, after the state aid and reserve funds are used there is a balance of approximately $1.9 million to be covered by taxpayers.

The same estimated costs per week, month and year presented in the 2019 Capital Project Newsletter factor in the interest.

Here is a helpful video on bonding.

Q: Would bidding contracts remain local and what is the estimated bond rate?
A: The estimated bond rate is 3.25%.  The contracts will be bid and awarded to the lowest responsible bidder.

Q: What happened to the money for the pellet furnace you put in and then removed for not being cost effective?
A: The installation of the pellet boiler was funded by a grant through NYSERDA, however it did not meet the agreed upon contractual heating efficiencies so NYSERDA removed it at no cost to the district. We did not receive money back, because we did not spend district money on the project.  This is why we are putting forth an energy capital project

 

For more information about the project visit the 2019 Capital Project Page