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The Referendum -
Brewer City Council Resolution
Brewer Citizens to VOTE
Tuesday - Dec 4th
City residents will
be asked to vote on the construction project in a special election
scheduled for Tuesday, Dec. 4, 2007. Voters will vote on a set of
referendum questions that will allow the City of Brewer and the Board of
Trustees of the City of Brewer High School District to issue bonds to
fund the project.
The Referendum Questions
Question 1:
Do you favor increasing the debt limit of the City of
Brewer High School District from $5,000,000 to
7.5% of the most recent state valuation of the City of
Brewer?
Question 1 raises the Trustees’ bond limit so they are
able to obtain funding to construct the
project. Their current limit is only $5 million, not enough to bond
the proposed school. The increase in the limit was approved by
the Legislature in 2005, pending approval by
voters in the City of Brewer.
Question 2:
Shall the Board of Trustees of the City of Brewer High
School District be authorized to issue bonds
or notes in the name of the District in an amount not
to exceed $36,850,383, which bonds may be made callable, to
construct and equip a grade Pre-K through
grade 8 school on the site of the existing Pendleton
Street School and an adjoining parcel that the Board of Trustees
currently has under an option agreement (the
“Project”); to accept a Maine High Performance
Schools grant of up to $120,000 for the Project; and to acquire and
convey easements and other real estate
interests as may be required for the Project?
Question 2 authorizes the Trustees to obtain a bond of
$36,850,383 to build the project. All but
$133,000 of the debt service on this bond will be paid by
the State of Maine over the life of the bond, with the remaining
portion to be paid by the Board of Trustees.
The $133,000 will be used to purchase property
for the proposed school.
The following Project information is provided as part of
Question 2:
A. Responsibility for Bond Payments
The City of Brewer High School District is responsible
for the local share of annual principal and
interest payments for the school construction project
included in the total cost of education appropriated pursuant to
20-A MRSA Section 15690, subsection 1, if any,
and for the annual principal and interest
payments for the non-state-funded portion of this school construction
project.
To help explain this, the “local share” will be the debt
service on the $133,000 used to purchase
property, and will be paid by the Board of Trustees over 20
years.
B. Additional Operating Costs
The estimated amount of the additional operating costs
attributable to the Project during each of the
first two years is $0.
It is estimated that the new school will actually save
taxpayers $50,000 each year in operating costs
during the first two years of operation.
C. Use of High Performance Schools Grant
The Department of Education is expected to require the
District to use a Maine High Performance
Schools grant of up to $120,000 to reduce the Project cost
and the total amount of bonds or notes authorized to be issued
for the Project.
If total construction bids exceed estimates for the
Project, the State may permit the District to
use the grant for such additional costs.
This grant will provide technical assistance that will
lead to reduced energy consumption in the new
school, thereby lowering operation and maintenance
costs through better building design.
Question 3:
If the Project described in Question 2 is approved,
shall the Board of Trustees of the City of
Brewer High School District be authorized to issue an additional
$2,637,500 in bonds or notes at local expense to construct and
equip a school
auditorium as part of the Project?
Question 3 authorizes the Trustees to obtain a bond to
be paid at local expense to build a school
auditorium, or performing arts center. With the closure of the
current middle school after the project is
completed, the district will not have a
venue for theater or musical performances.
Question 4:
If the Project described in Question 2 is approved,
shall the Board of Trustees of the City of
Brewer High School District be authorized to accept in-kind gifts, if
any, and to accept and expend cash gifts, if any, to provide
additional equipment and improvements for the
Project, provided that the work authorized by this
question does not increase the indebtedness incurred for this
Project?
Question 4 authorizes the Trustees to accept gifts from
any source to improve the project. However,
the acceptance of such gifts cannot increase the cost of
the project.
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