Many reasons for SAD 70 to request $93,000 loan

11 years ago

By Bob McDaniel
Special to the Houlton Pioneer Times
    As most would agree, education is one of the most valuable things we, as a society, can offer to our children. Regardless of whether you live in a big city or a small rural community, the sentiment is the same. What may be different is that, as part of that small rural community, we do not often have access to the same opportunities for methods and deliveries of such offerings. What we do have is the passion and commitment from a school board, school administrators, teachers, staff members, and our communities to continuously strive to bring the best opportunities to our students.

    Each year, there is a committee made up of individuals from school board and staff members who work for many hours to put together a budget that best represents the meeting of those student needs, while trying to maintain the integrity and functionality of the school properties, and still keep the taxpayers in mind. This has been no easy task over the last few years, especially with the burdens being placed on each school district from the Governor’s office; this year being even more difficult.
    The SAD 70 school board voted in support of the proposed budget brought forward by the Finance Committee, and, on Tuesday, June 18, will bring it forward to the public for a hearing held at the Hodgdon High School at 7 p.m. This hearing will provide a time for many to ask questions. We believe it would be beneficial to provide some information for the public to review before that time, or to those members of the community who are not able to make it to this public hearing.
    There is a proposed increase over the last year’s school budget ($100,000). A majority of this cost (approximately $78,000) is the amount that will be needed to cover the cost of the shift to the local level from the state level for the Maine State Retirement for our teachers. Although this has not been completely finalized, there is a strong push from Maine’s governor to now place this burden on our local district and their taxpayers, instead of being covered by the state, as it has been in the past. Since we still do not have final word, we must plan for the “worst-case” scenario, and place this requirement in our budget. If Governor LePage’s plan is not approved, and this shift does not take place, and no other requirements are placed upon the districts to cover local tax requirements for school funding, arrangements have been put in place through the wording of the warrant to have the monies go back to the district towns.
    As for the plans for taking out a loan in the amount of $93,000, please note this decision was not taken lightly. Several hours of discussion took place in regard to whether to request a loan, or keep the entire expense of the items in the proposed budget. The SAD 70 district has been debt-free for over 10 years. This is a fact we as a district are very proud of. Being diligent to shop around for the best rates, we were extremely pleased with a 2.25 percent interest rate. If there is ever a “good time” to borrow monies, now would be that time, since interest rates are at an all-time low. The loan monies would be utilized to make much-needed repairs to our district buildings and improve on the efficiency and safety of our school buildings.
    When we surveyed teachers and staff members, fuel consumption was a unanimous point the district needed to look at in order to save money. After conducting research, adding a Burner Booster to each of the school’s current heating systems was the option that seemed to be most efficient. Yes, there is a significant cost up front. However, given the return numbers, the systems pay for themselves in two years and the district would continue to save from the efficiency in years to come.
    LED lighting for the outside building lights is an additional way to save money. Some of the monies spent on this will be recouped immediately with a rebate being offered for each light we change. Additional savings will be provided each subsequent year. The savings in this will pay for itself in a two-year period by reducing 200 kilowatt hours per light to 35 kilowatt hours per light.
    Additional plans for the loan monies include installation of doors as alternate exit routes for the inner classrooms at Mill Pond School, and updates to the existing security systems in both schools. Because of the tragic events that occurred recently on school properties, a Threat and Safety Assessment was completed at our local schools. As a result of this, these two areas were listed as areas for improvement when it came to the safety of our students and staff.
    Finally, the last of the loan monies would be used to replace the roof on the Central Office. The existing roof is 35 years old, well outlasting the normal life expectancy of a shingled roof. Comparing the costs associated with potential damage from a leaking roof (mold damage and remediation, staff coverage and health costs related to the presence of mold, and damage to the technology/equipment housed in this building) and the replacement cost of the roof, the committee strongly recommends the replacement be done in this upcoming year.
    We believe the investments made in these areas are needed to keep our schools safe and efficient without going into major debt for an extreme length of time. The efficiency alone will provide benefits for even after the five-year term of the loan. We strived to keep the numbers down during our budget discussions, and tried to think of alternatives, without having a major disruption to the students’ learning. Adding the costs of the above items into the budget would have further increased the overall bottom line significantly.
    In an effort to be fiscally responsible, the board believes the addition of this loan is in the interest of the district.