Billerica Taxpayers Association Parker School Assessment VOTE NO ON PROP 2 ½ OVERRIDE

Billerica Taxpayers Association Parker School Assessment This Is NOT The Time To Be Taking On Unnecessary Debt

Topics For Discussion

Why You Should Vote NO

Background & Flawed Process

Tax Implications MSBA Risk

Background

Town and School Infrastructure – Decades of Neglect Nearly All of Our Schools Require Major Repair or Replacement Parker Elementary School (397 Students) Moratorium on State Funding Lifted – Free Money!

Flawed Process

Building Committee not reflective of community – 8 out of 13 were either employees, relatives of employees or did business with town Committee ruled out a proposal that would NOT have required an override

MSBA

MSBA – PROCESS IS NOT TAKE IT OR LEAVE IT!

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WILL CONSIDER A LESS EXPENSIVE ALTERNATIVE MSBA DOES NOT DIRECT SCHOOL SIZE AND COST THEY LIMIT THE ABUSES --- SETTING STANDARDS

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MSBA STANDARDS SUPPORT 400 STUDENT SCHOOL COMMITTEE USED CROWDING AT OTHER SCHOOLS TO JUSTIFY LARGER SCHOOL

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MSBA APPROVED THE LARGER SCHOOL (CONDITIONAL) CANNOT COME BACK TO MSBA FOR ANOTHER ELEMENTARY SCHOOL

From April 29 th Minutes of Parker School Building Committee

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

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

March 2009 MSBA Presentation On Towns

MSBA RISKS

Will The Money Be There?

– FY 2010 $600 Million State Revenue Shortfall MSBA $150 million contribution Reduced Sales Tax Revenue results in another $27 million – Projected Revenue FY 2011 Abysmal – much worse Additional MSBA “contributions” Reduced Sales Tax Revenue – Will 2012 be worse?

Issues

400-Student School ($22M) vs 500 Student School ($34M) 400 Student School Within Debt Limit – Meets Parkers Current and Planned Reg 500 Student School Requires 2 ½ Override – Exceeds Parkers current and planned reg.

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

Economy and Tax Implications

Worst Economy Since The Great Depression – No End In Sight (Halfway Through FY And $600M Shortfall) – 10.2% unemployment nationally 30 % Of Billerica Residents On Fixed Income – No Social Security Cost Of Living Increase – Medicare And Medicaid Benefits Reduced – Town Plans Increase Water And Sewer Fees Commercial Real Estate Market Collapsing Current Split Between Business And Residential – Business taxes pay nearly ½ of current budget – What Happens If More Businesses Close?

Residential Makes Up The Difference

Nearly $1.6 Trillion Mortgage Resets 2010 - 2012

Better to use current debt capacity for an affordable school and reserve override option for future needs, if they arise.

Effect on Ability to Attract and Hold Businesses We will become uncompetitive with neighboring communities.

We already have millions of SF of empty industrial space.

Comparison Billerica Tax Rate w Surrounding Towns

30 25 20 15 10 5 0

Burlington Lowell Tewksbury Wilmington Billerica - now Billerica w exclusion Towns

Burlington Lowell Tewksbury Wilmington Billerica - now Billerica w exclusion

BTA Proposal

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

Previously considered but rejected by Building Committee.

MSBA RISKS

WILL THE MSBA APPROVE A 400-STUDENT SCHOOL?

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YES THEY HAVE A PROCESS OPPONENTS ARE USING SCARE TACTICS

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COULD WE LOSE FUNDING?

YES, BUT UNLIKELY MSBA UNDERSTANDS THE URGENT NEED

Billerica Taxpayers Association Parker School Assessment VOTE NO ON PROP 2 ½ OVERRIDE