Following a Westwood Finance & Warrant Commission (FinCom) public hearing on September 20, 2021, where only two people commented during a public comment period that began 90 minutes into the meeting, FinCom members voted 10 to 2 in favor of an article to borrow $84.6 million to pay costs of design, construction, equipping and furnishing a new consolidated Hanlon-Deerfield elementary school.
As Committee Chair Dianne McCarthy was absent for a family emergency, FinCom Vice Chair George Hertz presided. The first hour and a half was dedicated to FinCom questions, some which had been submitted in advance, and some which arose organically during the hearing.
Superintendent of Westwood Public Schools Emily Parks and School Committee Chair Maya Plotkin provided responses. Finance Director Pam Dukeman and Town Administrator Christopher Coleman also answered questions.
The new school building project would consolidate the Hanlon and Deerfield schools. The costs would be eligible for a grant from Massachusetts School Building Authority (MSBA) for 39.35% or up to $18.2 million of approved project costs. However, according to Ms. Parks, while the base reimbursement from MSBA is about 39 percent, the net reimbursement with caps and exclusions is 21.1 percent.
The debt from the proposed school building project would fall under a debt exclusion from Proposition 2 1/2, the Massachusetts law that otherwise limits annual property taxes in a town. Westwood Financial Director Pam Dukeman noted that in the last 20 years in Westwood, there have only been two projects of exempt debt – the high school and the library.
The article, if approved by Westwood residents at October’s Special Town Meeting and Town Election, would authorize the town’s Treasurer and Select Board to borrow money and issue debt as a debt exemption.
Assuming a 30 year repayment period, and a 2 percent interest rate made possible by Westwood’s AAA bond rating, the cost of the project to the average homeowner in Westwood would be $462 per year. In comparison, simply bringing Hanlon and Deerfield Schools up to code would cost the average homeowner $277 per year. It was noted that the cost difference for the average homeowner between a newly constructed, consolidated Hanlon-Deerfield school versus bringing the two separate schools up to code is $185 per year.
Although the associated tax obligation would be calculated based on a resident’s home valuation, the tax burden will not change with home values increasing, said Ms. Dukeman. She emphasized that the total dollar amount of debt is approved by residents at Town Meeting and the town will not collect more than is approved.
Construction on the proposed new school could begin, at its earliest, in Summer 2022. This would be the earliest time that a major portion of the bond would issue.
FinCom member, Mr. Peter Ittig, spoke of the burden of a tax increase on the elderly. He noted that the proposed Hanlon project costs are significantly higher than any comparison school. It is $10 million more than a building project in Medfield for a school with larger enrollment.
According to Superintendent Parks, the higher costs of the proposed new Hanlon school building project can be attributed to including in its design a new field, larger gym, and a special commitment to special education, which may be specific to Westwood.
However, one FinCom member noted that the proposed new school building project, at $621 per square foot, is tens of dollars per square foot less than similar projects in other towns.
Ms. Parks cautioned that failing to approve borrowing for the proposed new school could be detrimental to future Westwood efforts to secure an MSBA grant. In Fall 2012, she said, the town of Lincoln was at the same point in the MSBA process as Westwood is now. The Lincoln school building project failed to garner enough votes to be approved. Subsequent to that vote, Lincoln unsuccessfully reapplied three times for an MSBA grant. As a result, a project that would have cost the town $23 million with help from an MSBA grant became a $93 million project with costs fully shouldered by the town.
Some additional facts to highlight about the proposed school:
Getting into a cycle of expenditures to replace schools every few years was another issue brought up by Mr. Ittig and others. A number of FinCom members discussed that capital improvements will also soon be needed for Westwood’s Fire Station, Town Hall, and to bring the Sheehan School up to code.
An estimate in December 2020 found that costs to bring the Sheehan School up to code would be $27.1 million or $50 to $60 million for renovations, additions, or new construction, according to Ms. Parks. An expected cost for the Fire Station has not been yet estimated, said Mr. Coleman.
In deciding in favor of introducing the borrowing article for a resident vote at Town Meeting, FinCom member George Leham stated, “It is not financially responsible to let $18.2 million [the MBSA grant] go out the door when a project is inevitable,” referring to the fact that the Hanlon and Deerfield schools must be brought up to code one way or another.
FinCom members voting yes on the article were Mr. William Bruce, Mr. James Ferraro, Mr. Michael Gay, Mr. George Hertz, Ms. Caitlyn Jurak, Mr. Thomas Kilgarriff, Mr. George Leham, Ms. Kristina Patyjewica, Mr. Christopher Poreda and Mr. Alexander Yale.
Mr. Ittig and Ms. Lauren Fitzpatrick voted no.
Updated 09/23/2021 at 12:42 p.m. The date, September 20, 2021, has been added as the date of the FinCom public hearing this week. Additionally, a link to Westwood Media Center's broadcast of the hearing has been added.
Updated 09/23/2021 at 4:35 p.m. Clarification has been added that FinCom's approval of the borrowing article pertains to introducing the article for a resident vote. Westwood residents will ultimately be the ones to decide whether to pass the borrowing article in a Special Town Meeting and Town Election in October 2021.
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