Avon High School Proposed Renovations and Additions September 7, 2006

2. Avon High School Proposed Renovations and Additions September 7, 2006

3. Tonight’s program • Overview of Project • Question and answer session

4. Overview of Project • Why are we here • What has happened since June 2005 • Why Project is still needed • What’s included in Project • Project cost comparisons • Projected tax impact • Consequences if referendum is defeated • Revised timetable

5. Why are we here? • Followed previously used process • Referendum based on schematics ($50,000) • Final architectural drawings ($1 million) • Process successful the last 10 years • Not successful this time due to conditions beyond control of Building Committee • Need still here due to present and future high school enrollment

6. What has happened since June 2005? • Final architectural drawings developed • Project size unchanged • 67,500 sq. ft. of additional space • 13,500 sq. ft. of renovated space • State approval • Submitted in December • Approved in June • Bid process • Guaranteed maximum price • Need additional $4.7 million

7. Why Project is still needed • Current and projected enrollment exceeds building capacity • Additional classroom space needed to accommodate increased enrollment (from 900 students to 1,300 students) • Additional space needed in core facilities such as cafeteria, gymnasium, library to accommodate increased enrollment (designed for 600-650 students; not increased in 1997 project)

9. What’s included in Project New construction— 11 General classrooms 1 Computer lab 2 Science labs 3 Special education classrooms Gymnasium and team locker rooms Cafeteria Instrumental music room Expanded fitness/weight room

10. What’s included in Project Renovated spaces— Kitchen and serving area Nurse’s office/clinic Student support services (Psychologist, social worker, occupational therapist, speech and language therapist) Four stairwells Four lavatories Hallway fire doors

11. What’s included in Project Capital improvements— Re-roofing existing building Replace existing gymnasium floor Stage curtain/rigging Refurbish/replace lockers Replacement of HVAC units Upgrade to video/audio/data infrastructure New food service equipment Accessibility of football field bleachers

13. Floor Plan

14. Project cost comparisons

15. Causes of increased costs • Rapidly increasing materials costs • Material availability • Increased energy costs • Unexpected construction requirements by SDE • Revised timing of project

16. Issues for the Board of Finance • Can the Town manage the additional debt? • If so, what will the additional and total tax impact be on each household?

17. Financial facts & figures • Avon’s Grand List is $2.2 billion • Town collects 99.97% of property taxes • History of aggressive pay-down of debt • Avon’s triple A bond rating

18. Outstanding Debt (as of July 1, 2006)G.O. Bonds (Long-Term Debt) FY Beginning Original Debt FY Ending Date Purpose Issue Outstanding Maturity 1/15/94 RBS Renovations $5,670,000 $1,200,000 2009 9/15/97 AHS Renovations 4,300,000 1,760,000 2012 9/15/97 APD Renovations 1,800,000 740,000 2012 1/15/98 AHS Renovations 5,825,000 2,700,000 2012 7/15/98 AHS Renovations 6,915,000 3,765,750 2013 7/15/98 Sewer Interceptor 550,000 299,250 2013 7/15/02 Fisher Farms Open Space 1,295,000 932,000 2016 7/15/02 Thompson Brook School 14,245,000 10,163,000 2016 TOTAL BONDS………… $40,600,000 $21,560,000

19. Outstanding Debt (as of July 1, 2006)Bond Anticipation Notes (Short-Term Debt) Note FY Beginning Original Debt FY Ending Date Purpose Issue Outstanding Maturity 3/26/03 M.H. Rhodes $1,500,000 $1,000,000 2007 6/20/05 AHS Ren. $9,000,000 9,000,000 2007 Total Notes……… $10,500,000 $10,000,000

20. Statutory Debt LimitationJune 30, 2006 The Base is the total tax collections, including interest and lien fees, received in the previous fiscal year. The Base for Avon is $51,988,605.

21. Statutory Debt LimitationJune 30, 2006 Comparison of Debt Limitations with actual Avon Debt: Gen. Purpose: 2.25 x Base = $116,974,361 $5,112,000 Schools: 4.50 x Base = $233,948,723 $50,398,984 Sewers: 3.75 x Base = $194,957,269 $293,156 Combined Max: 7.00 x. Base = $363,920,235 $55,804,104 This includes debt actually incurred (as shown on pages 17 and 18) and debt authorized but not yet issued.

22. Financial facts & figures • Town will use a mix of Bond Anticipation Notes (“BANS”) and Bonds • Town has flexibility in scheduling principal and interest over the life of the loan

24. Potential upcoming projects(rough cost estimates, subject to revision) Town Hall Bldg. Renovations $2,000,000 (est.) Library Expansion $7,500,000 (est.) Fisher Meadow Ball Fields $1,000,000 (est.) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Fire Station/Training Facility $5,000,000 (est.) Secret Lake Water Mains $1,500,000 (est.) Open Space Preservation ? ?? New Elementary School ? ??

25. Financial facts & figures • Debt service in the FY 06-07 budget: $5,038,337 • Annual debt service will peak at $5.5 million in FY 08-09 and then decline • This level of debt service is manageable and will not jeopardize the Town’s credit rating

26. Factors in tax impact statement • Estimated interest rate (5.36%) • Life of borrowing period (19 years) • Frequency of revaluations (5 year cycle) • Potential for Grand List growth over life of borrowing

27. Property statistics • About 6,600 houses and condos in Avon • About two-thirds have an estimated market value of $400,000 or lower • Median assessed value is $202,470

28. Selection of model properties • Based on assessed valuation, not market or desired sales price • Assume assessed value will increase at same rate as Grand List following each 5-year revaluation • Then model properties at 25th, 50th and 75th percentiles

29. If Project is approved: tax impact over 19 years Property Assessment Percentile: Adopted Proposed Total Avg./ 2005 2006 Cost Yr. 25th $1,755.82 $357.23 $2,113.05 $111.21 50th $2,419.69 $492.29 $2,911.98 $153.26 75th $3,450.22 $701.95 $4,152.17 $218.53

30. Tax impact example Estimated market value of home $285,715 Home taxable assessment $200,000 (70% of estimated value) Tax impact over 19 years— Adopted 2005 $2,390.18 Proposed 2006 486.36 Total $2,876.54 Average per year $151.40

31. Determine your own tax impact over 19 years Total proposed borrowings — Multiply your assessed value by Adopted Proposed Total 2005 2006 .011950 .00243 .01438

32. Additional operating costs Added space costs— Utilities, custodial/maintenance, insurance First year after construction $425,000 Each subsequent year $ 11,000 Added educational costs— Teaching personnel, instructional materials and supplies, equipment Average annual increase $340,000

33. Consequences if referendum is defeated • Six portable classrooms needed in fall 2007; more in future years • State does not reimburse for portable classrooms • Capital improvements will be capital projects in future • Core spaces cannot accommodate increased enrollment (library, cafeteria, gymnasium) • Significant additional architectural fees and other costs for changes in scope and redesign • Increased construction costs are highly probable • State reimbursement may be less in the future

34. Revised timetable • October 11, 2006—Referendum 6 am-8 pm at Avon Senior Center • November 2006-summer 2007— Construction of cafeteria and gymnasium • Summer 2007-spring 2008— Construction of new classroom addition • Late spring 2008— Project complete

36. Avon High School Proposed Renovations and Additions