By Mickey Friedman
June 11, 2014
Significant. There are several definitions including “large enough to be noticed” and “very important.” So for one man, what’s significant is noticeable. For another, it’s an important change.
The Berkshire Eagle reported that at its May 22, 2014 meeting the Berkshire Hills Regional School Committee decided to “ask voters to approve a high school renovation project – one with a ‘significant’ reduction in the tax burden …”
Significant. The magic word.
According to Superintendent Dillon “the new project will be scaled back to $51.2 million. The reimbursement by the state to the district will remain at 48 percent, or $24.3 million …
“The reconfigured plan will mean more savings to taxpayers for several reasons: The lower overall cost and because of the way the plan will be financed.
“He said the terms of the bond financing the district’s share of the project will be extended from 20 to 25 years, which would lower the annual ‘hit’ to taxpayers.
“For example, the impact to the taxpayer of the original project was an average of $422 to $458 annually to Great Barrington; $195 to $215 annually to Stockbridge and $376 to $406 to West Stockbridge annually.
“The amended plan, he said, meant an average hit to Great Barrington taxpayers of $321 to $338, a drop of 26 percent; $140 to $147 annually, a drop of 30 percent in Stockbridge and $316 to $332 annually in West Stockbridge, a drop of 18 percent.
“‘But in each case, this is a pretty significant reduction,’ said Dillon.”
There are a lot of significant numbers floating around here.
What was once a $55.6 million renovation now costs $51.2 million. And for the taxpayers of Great Barrington – the ones who put the kibosh on the original project by voting 955 to 596 against it – well, what was once an annual tax increase of between $422 to $458 will now drop to between $321 to $338.
“A pretty significant reduction.” And “a drop of 26 percent.”
In the world of words today something can be “true” but not quite tell the entire story.
So yes, if you compare the high valuation figure of a $458 annual tax hike for the $55.6 million high school renovation with the new high valuation figure of $338 that’s a 26 percent reduction. And the low valuation estimate of a $425 annual tax hike versus the new, improved $321 annual increase. So if we approve the $51.2 million high school renovation project Great Barrington taxpayers will spend 26 percent less a year than they would have with the $55.6 million project.
BUT. BUT. BUT.
26 percent less a year. A year.
The $55.6 million was to be financed over 20 years. The $51.2 million will be financed over 25 years. What does that do to significant? To the 26 percent? 20 years to 25.
Here’s some math. Let’s start with the high valuation:
$458 a year for 20 years = $9,160
$338 a year for 25 = $8,450
That’s a difference of $710. So, yes, for one year, you actually do save 26 percent but over the course of the twenty-five years, your 26 percent savings turns into the less significant 7.8 percent. Because $8,450 is 92.24 percent of $9,160.
Let’s try the lower end:
$425 a year for 20 years = $8,500
$321 a year for 25 years = $8,025
That’s a difference of $475. Yes, for one year, you do save 24.5 percent but over the course of the twenty-five years, your 24 percent turns into 5.6 percent. Because $8,025 is 94.41 percent of $8,500.
And overall, $51.2 million is 8 perecent less than $55.6 million.
Now let’s look at changes the School Committee and School Building Committee have come up with to change the scope, and modify the budget by $4,020,800.
One of the largest changes comes from reducing the Owner’s Contingency from $1.5 million down to $500,000. A reduction of one million dollars. Then shortening the construction schedule by utilizing ten portable classrooms. This saves another $1.061 million.
Here are some other ways they’ve found to save money: by eliminating the Conservatory greenhouse ($186,900); substituting pre-cast curbing for granite ($44,100); making changes to the playground ($42,500); replacing clerestory monitors with skylights ($167,600) and reducing the number of skylights windows by 12 ($41,500); cleaning the existing auditorium seats rather than replacing them ($183,800); retaining the bleachers at the track and eliminating the planned new granite seating ($31,000); simplifying the HVAC system and controls ($523,800), and by reducing the numbers of CCTV cameras ($21,900).
And so the BHRSD will be asking voters this November for a second chance to retain the Massachusetts School Building Authority’s 48 percent reimbursement for the project.
The District believes that this 26 percent reduction in annual real estate taxes answers the concern that many Great Barrington voters expressed at the polls: that the original project was too expensive. That it’s a big enough and significant enough reduction.
Soon you’ll have your chance to decide what’s significant.