Committee Recommends Bedford Schools Reduce Amount of Bond
The Bedford School District’s Finance Committee has recommended reducing the district’s planned $70 million district-wide facilities bond for this spring by $10 million to $15 million to provide school officials greater flexibility over the next decade.
Three board members who also serve on the committee, Robert Mazurek, Beth Staropoli and Steven Matlin, informed their colleagues at last week’s Board of Education meeting that the district could fund up to a $70 million bond with no tax impact, but if additional capital improvements were needed anytime within the next 12 years, it could cost taxpayers.
Mazurek said it was recommended that the district trim the bond to between $55 million to $60 million to keep the district’s options open. The board is looking to hold a referendum on May 17, the same day as the board election and budget vote.
“Flexibility was one of the key drivers in this recommendation,” Mazurek said. “That is to not max out our credit card, per se …until 2034.”
Mazurek said if voters approve the referendum, the committee has suggested the district borrow the money for the project over three consecutive years starting in 2023, but to authorize larger bonds earlier in that time frame to take advantage of historically low interest rates that are soon likely to start rising.
The district will have significant bonds coming off the books in 2023 and 2026 that will negate the new borrowing that would need to take place.
Extensive infrastructure improvements are slated to be made throughout the district including work at each of Bedford’s seven school buildings. Some of the largest potential improvements would occur at Fox Lane High School and Fox Lane Middle School, where spaces would be reconfigured to make the schools more adaptable for 21st century learning.
Over the next month, the board must finalize the scope of work and vote on scheduling the referendum by Mar. 2 if it is going to be held this spring. Currently there are about $107 million worth of projects that have been identified as potential items to be included in the bond before the board begins whittling the scope.
Matlin said the committee decided it was wrong to potentially hamstring the district’s ability to borrow should other needs arise.
“We didn’t feel it was appropriate to tie the district up, or tie future boards’ hands for the next 12 years or 13 years with having the ability to do a capital project without having to raise taxes,” Matlin said.
Mazurek said it will be critical to borrow as much as possible after an approval because the district’s current calculations budget for a rise in interest rate from the current 2 percent to up to 3 percent. Rates that are higher than that could increase the cost to the district by as much as $5 million, he said.
The board will be meeting each of the next three Wednesdays to devote time toward deciding on the bond’s scope. The Feb. 9 meeting will focus exclusively on the bond, said Board President John Boucher.
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