School officials introduce $8.8 million in projects

By JOHN KLINE
john.kline@goshennews.com

September 17, 2008 10:24 am

— SYRACUSE, Ind. — Members of the Wawasee School Board Tuesday got their first look at a proposed $8.8 million school renovation project that would span five years and the entire school corporation.
Presented during a special board work session, the proposed plan was described by Superintendent Tom Edington as a less costly, streamlined version of the corporation’s currently established 10-year plan that better reflects the current hardships of today’s economy.
“We’re trying to do what’s in the best interest for our students,” Edington said.
According to Edington, the plan will address the corporation’s most immediate needs regarding building safety, energy conservation, infrastructure and the replacement of several roofs.
Moderate renovation of the school vocational building and the addition of space at Milford School in order to accommodate full-day kindergarten was also included within the proposed plan.
Dana Wannemacher, vice president of the Barton-Coe-Vilamaa engineering firm, Fort Wayne, provided the board with a breakdown of the proposed project, as well as a tentative timeline for completion.
According to Wannemacher, current projections see the project being bid sometime this winter, with Phase 1 construction to begin in spring 2009 and conclude in the fall. Phase 2 construction was given a projected starting date of spring 2010, with conclusion again projected for the fall.
Following Wannemacher’s presentation, financial consultant Phil Gutman provided the board with a quick run-through of the project’s proposed five-year preliminary financing budget.
According to Gutman, total construction “hard” costs have been projected at $7.5 million, while total construction soft costs, including survey and architects fees, was projected at $697,200.
As for cost of issuance, which includes such things as legal fees, bond insurance and trustee fees, Gutman provided a projected cost of $201,600, for a total estimated borrowing size of $8.83 million.
Utilizing an annual lease rate of interest of 3.99 percent, Gutman told board members, there would be an average annual lease payment of $1.97 million. The maximum annual lease payment is projected at $1.99 million.
Overall, Gutman indicated total lease payments over the projected five years are expected to top out at $9.86 million, with a total interest cost of $1.02 million.
According to Edington, by utilizing the five-year payback period proposed by Gutman Tuesday, the current project is expected to leave taxpayers within the Wawasee Community School Corp. with a total school tax rate of about half the present rate after taking into account state property tax reductions slated to begin in 2009.
“Even though this is an estimated budget, I think it is a tight budget,” Gutman said. “It’s an estimate based on the market today.”
Following Gutman’s presentation, board members granted permission to advertise for a “1028 hearing,” a public hearing where the scope of the project and costs are explained, to be held during their next meeting.
During the hearing, members of the public will be invited to discuss the proposal and provide comments before the board makes its final decision on whether or not to proceed with the proposed renovation project.

Proposed projects and their costs

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