Special Board of Aldermen Public Hearing — 12/16/2019 Page 19
Mr. Lee
So the question is, to what level of what detail has the cost estimates been done and that is actually a great
question for Harvey but Harvey Construction has put together a very, very detailed estimate of materials, quantities
and labor units to develop the cost based on their experience in building schools. It is a very, very detailed
breakdown.
Mr. Teeboom | just want to remind you, the last time Harvey gave us a detailed break down it was on the
Performing Arts Center, | think it something $10.5 million dollars. Carl knows that, right now it is around $20 million.
So can we afford it, that’s the question, | looked and did my own analysis, and it talks about an average payment,
average payments don’t count, actual payments count. The first payment due in this bond is $8.85 million. Then it
goes down. $8.85 million represents about between 4% and 5% of the tax rate. 4% to 5%, how are you going to
pay for this? Are you going to load another 4% to 5% on the taxpayers?
Chairman Dowd
Is that your remaining question?
Mr. Teeboom | have another one, this is a public hearing Mr. Chairman so | intend to ask some questions. You
are talking about a $118 million dollar bond that has a $54 million dollar interest payment. Interest alone represents
46% of principal because you are borrowing this thing for 25 years. Can we afford it? Can we, just to give you an
idea, | looked at the budget to see exactly what this means. Right now, if you look at the 2020 budget, you will find
that the combined City School debt is principal and interest, it’s $166 million. This school project alone more than
doubles that, $172 million added to $166 million; that’s over $300 million, my God. Who is going to be looking at
the details? You know I’ve got this fancy four-story building, who is looking at the details, can we afford it. | didn’t
see that question in the questions? In terms of the payments, we are talking about an annual payment of new debt
of $8.9 million dollars, | think | mentioned that earlier, it was the first payment. That’s half the current $17 million
dollar payments, the total payments in the budget today are $17 million, we are adding more than 50% on top of
that annual payment, annually for 25 years. Where is the bonding analysis, | did not see that presented. | saw this
fancy little diagrams, very nice, you know, the playing area and all that. I’d like to go to a school like that, hell I’d
like to live in a palace. But where was the bonding analysis, has that been performed Mr. Chairman.
Chairman Dowd
Is that a question?
Mr. Teeboom Yes.
Chairman Dowd
Then you would ask the Treasurer.
Mr. Teeboom Mr. Treasurer?
Mr. Fredette
Excuse me, David Fredette City Treasurer. We have a bond spend plan that we update annually, sometimes more
than once a year. And this project has been included in that plan and been reviewed. The one thing that you have
to remember is debt payments are going down from Fiscal Year 22 through 25 because the High School is being
paid off.
Mr. Teeboom | know the debt payments are going down, but are they going down by $8.9 million dollars?
