Asking for your vote:
Through a public vote on May 21, 2019, a $41M capital project was approved for IRCSD. On November 16th, IRCSD residents will be asked to vote on additional funding for this capital project with no impact to the tax levy.
Scope of this project:
The scope of this project includes roof repairs, climate control, as well as essential mechanical, structural and electrical elements within our buildings. Installing significant energy efficiencies for lighting and climate control, upgrading aged PA and Fire systems, renovating 50+ year old toilet facilities, repair/replacement of aging roof and boiler/HVAC systems, as well as many other key infrastructure components will be included. With the additional funding, the full project is expected to address all eight instructional buildings and the three main support buildings (Transportation, Building & Grounds and the storage facility at Calcium).
Funding and the construction market:
The need for additional funding is due to several factors. The original estimates and approvals for this project were done pre-COVID in 2019, which was a very different construction market than we have today. Building materials have significantly increased in cost and work sites are experiencing substantial, often unpredictable, delays in delivery. In addition, construction labor shortages in the North Country continue to exist in an ever-increasing tight labor market. The impact on our project has been significant. As with other Indian River capital projects over the last decades, it is important to note that the requested additional funding will have no impact on the local tax levy.
Meeting the goals:
The goals of this project from its planning stages through now continue to be: health and safety upgrades to all school buildings, vital infrastructure maintenance and/or upgrades to aging systems and facilities, and fiscal responsibility as delaying these projects will cost the district more in the long term. To meet these goals, the district is recommending adding a third phase and increasing the funding for this capital project by $25.75 million to ensure the full scope of the project is completed and our district buildings remain appropriately maintained to provide a safe, secure, and efficient environment that is optimal for student learning.
Phase 1 - in process
Antwerp Primary is underway and is expected to be substantially completed in the February 2022 timeframe. This work includes a combination of HVAC, insulation/windows and general school mechanical upgrades. The replacement of the heating oil tank is expected to be done following the conclusion of the heating season.
Phase 2 - in process
Middle School began this summer and as it involves installing a geothermal system, the work is anticipated to span multiple school years. This work includes a complete conversion of the HVAC system to one that is fully geothermal as well as roofing, lighting and various mechanical system upgrades.
Phase 3 - Vote November 16th
All remaining work will include replacing and upgrading aging boiler/HVAC systems, installing significant energy efficiencies for lighting and climate control, renovating 50 year old rest rooms, lighting, PA & fire systems, and many other key infrastructure components.
The reason for the recommendation:
While construction costs for Antwerp Primary came in relatively close to original estimates, the Middle School came in much higher than anticipated, leaving a funding deficit to complete Phase 3 of the project. In addition to the higher than anticipated costs for the materials, the cost of the remaining work is also higher. This created the deficit that will be addressed by the additional funding. In collaboration with our architects, construction managers, and financial advisors, it is estimated that $25.75M in additional funding for the current project is necessary. Given that material costs are not expected to return to pre-COVID rates, with inflation trending upwards, and the construction market not expected to change, waiting to do the remaining work on this project would likely create an even higher price tag. This especially holds true if the remaining portions of the project are broken up into smaller projects over time. This estimated increase in the total project will NOT translate into additional taxes for the Indian River community. The district has the capacity to increase our debt service by this amount without increasing our general budget expenses while taking advantage of a favorable state aid ratio. This is due to the fact that we have a significant reduction in our debt service occurring over the next few years as older bonds are paid off.
