VOTE NO ON PROP 2 ½ VOTE NO ON PROP 2 ½ OVERRIDEOVERRIDE

Billerica Taxpayers AssociationBillerica Taxpayers AssociationParker School AssessmentParker School Assessment

Billerica Taxpayers AssociationBillerica Taxpayers AssociationParker School Assessment Parker School Assessment

This Is This Is NOTNOT The Time To Be Taking On The Time To Be Taking On Unnecessary DebtUnnecessary Debt

Topics For Discussion Topics For Discussion

Why You Should Vote NOWhy You Should Vote NO

Background & Flawed ProcessBackground & Flawed Process

Tax ImplicationsTax Implications

MSBA RiskMSBA Risk

BackgroundBackground

Town and School InfrastructureTown and School Infrastructure– Decades of NeglectDecades of Neglect

Nearly All of Our Schools Require Major Nearly All of Our Schools Require Major Repair or ReplacementRepair or Replacement

Parker Elementary School (397 Students)Parker Elementary School (397 Students)

Moratorium on State Funding Lifted Moratorium on State Funding Lifted – Free Money!Free Money!

Flawed ProcessFlawed Process

Building Committee not reflective of Building Committee not reflective of communitycommunity– 8 out of 13 were either employees, relatives of 8 out of 13 were either employees, relatives of

employees or did business with townemployees or did business with town

Committee ruled out a proposal that would Committee ruled out a proposal that would NOT have required an overrideNOT have required an override

MSBAMSBAMSBA – PROCESS IS NOT TAKE IT OR LEAVE IT!MSBA – PROCESS IS NOT TAKE IT OR LEAVE IT!– WILL CONSIDER A LESS EXPENSIVE ALTERNATIVEWILL CONSIDER A LESS EXPENSIVE ALTERNATIVE– MSBA DOES NOT DIRECT SCHOOL SIZE AND COST MSBA DOES NOT DIRECT SCHOOL SIZE AND COST

THEY LIMIT THE ABUSES --- SETTING STANDARDSTHEY LIMIT THE ABUSES --- SETTING STANDARDS

– MSBA STANDARDS SUPPORT 400 STUDENT SCHOOLMSBA STANDARDS SUPPORT 400 STUDENT SCHOOL– COMMITTEE USED CROWDING AT OTHER SCHOOLS COMMITTEE USED CROWDING AT OTHER SCHOOLS

TO JUSTIFY LARGER SCHOOLTO JUSTIFY LARGER SCHOOL– MSBA APPROVED THE LARGER SCHOOL MSBA APPROVED THE LARGER SCHOOL (CONDITIONAL)(CONDITIONAL)

CANNOT COME BACKCANNOT COME BACK TO MSBA FOR ANOTHER ELEMENTARY TO MSBA FOR ANOTHER ELEMENTARY SCHOOLSCHOOL

From April 29From April 29thth Minutes of Parker Minutes of Parker School Building CommitteeSchool Building Committee

““Below are the specific examples listing Below are the specific examples listing intent to withhold information from Spring intent to withhold information from Spring 2009 Town Meeting.”2009 Town Meeting.”

““D. Creesy asked about the relative cost of a D. Creesy asked about the relative cost of a 96,000 SF building at an estimated $35mil 96,000 SF building at an estimated $35mil compared with the earlier estimate of a compared with the earlier estimate of a 72,000 SF building at an estimated $22 72,000 SF building at an estimated $22 mil.”mil.”

March 2009 MSBA Presentation On Towns

MSBA RISKSMSBA RISKS

Will The Money Be There?Will The Money Be There?– FY 2010 $600 Million State Revenue Shortfall FY 2010 $600 Million State Revenue Shortfall

MSBA $150 million contributionMSBA $150 million contributionReduced Sales Tax Revenue results in another Reduced Sales Tax Revenue results in another $27 million $27 million

– Projected Revenue FY 2011 Abysmal – much Projected Revenue FY 2011 Abysmal – much worseworse

Additional MSBA “contributions” Additional MSBA “contributions” Reduced Sales Tax Revenue Reduced Sales Tax Revenue

– Will 2012 be worse?Will 2012 be worse?

IssuesIssues

400-Student School ($22M) vs 500 400-Student School ($22M) vs 500 Student School ($34M) Student School ($34M) 400 Student School Within Debt Limit 400 Student School Within Debt Limit – Meets Parkers Current and Planned RegMeets Parkers Current and Planned Reg

500 Student School Requires 2 ½ 500 Student School Requires 2 ½ OverrideOverride– Exceeds Parkers current and planned reg.Exceeds Parkers current and planned reg.

2 Story School vs 3 Story School2 Story School vs 3 Story School– Available Land and Abutters Available Land and Abutters

Economy and Tax ImplicationsEconomy and Tax ImplicationsWorst Economy Since The Great Depression Worst Economy Since The Great Depression – No End In Sight (Halfway Through FY And $600M No End In Sight (Halfway Through FY And $600M

Shortfall)Shortfall)– 10.2% unemployment nationally10.2% unemployment nationally

30 % Of Billerica Residents On Fixed Income30 % Of Billerica Residents On Fixed Income– No Social Security Cost Of Living Increase No Social Security Cost Of Living Increase – Medicare And Medicaid Benefits ReducedMedicare And Medicaid Benefits Reduced– Town Plans Increase Water And Sewer FeesTown Plans Increase Water And Sewer Fees

Commercial Real Estate Market CollapsingCommercial Real Estate Market CollapsingCurrent Split Between Business And ResidentialCurrent Split Between Business And Residential– Business taxes pay nearly ½ of current budgetBusiness taxes pay nearly ½ of current budget– What Happens If More Businesses Close?What Happens If More Businesses Close?

Residential Makes Up The DifferenceResidential Makes Up The Difference

Nearly $1.6 Trillion Mortgage ResetsNearly $1.6 Trillion Mortgage Resets2010 - 20122010 - 2012

Better to use current debt capacity Better to use current debt capacity for an affordable school and for an affordable school and

reserve override option for future reserve override option for future needs, if they arise.needs, if they arise.

Effect on Ability to Attract and Hold Effect on Ability to Attract and Hold BusinessesBusinesses

We will become uncompetitive with We will become uncompetitive with neighboring communities.neighboring communities.

We already have millions of SF of empty We already have millions of SF of empty industrial space.industrial space.

Comparison Billerica Tax Rate w Surrounding Towns

0

5

10

15

20

25

30

Burlington Lowell Tewksbury Wilmington Billerica - now Billerica wexclusion

Towns

Rat

e/$1

000

Burlington

Lowell

Tewksbury

Wilmington

Billerica - now

Billerica w exclusion

BTA ProposalBTA Proposal

Build a 400-student, 22M Build a 400-student, 22M Elementary School within current Elementary School within current debt limit.debt limit.

Previously considered but rejected Previously considered but rejected by Building Committee.by Building Committee.

MSBA RISKSMSBA RISKS

WILL THE MSBA APPROVE A 400-STUDENT WILL THE MSBA APPROVE A 400-STUDENT SCHOOL?SCHOOL?– YES THEY HAVE A PROCESSYES THEY HAVE A PROCESS

OPPONENTS ARE USING SCARE TACTICS OPPONENTS ARE USING SCARE TACTICS

– COULD WE LOSE FUNDING?COULD WE LOSE FUNDING? YES, YES, BUT UNLIKELYBUT UNLIKELY

MSBA UNDERSTANDS THE URGENT NEEDMSBA UNDERSTANDS THE URGENT NEED

VOTE NO ON PROP 2 ½ VOTE NO ON PROP 2 ½ OVERRIDEOVERRIDE

Billerica Taxpayers AssociationBillerica Taxpayers AssociationParker School AssessmentParker School Assessment