LFC Comments by Brian Massie, Executive Director
Many thanks to Riverside’s very capable CFO, Mr. Gary Platko, for answering our questions about the Riverside Bond Levy that will be on the May 3rd ballot. The total construction and interest costs on this project are truly unknown.
I still object to the administration not telling the voters that in addition to the construction costs of $147,725,000. there is another $130 million in interest over the term of the bond.
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1. Can you please provide the calculations used to determine the projected $147,725,000 cost for construction of the new schools?
Answer: Attached is a cost summary created by our architects that was reviewed in December 2021. The estimate was calculated using $335.68 per square foot for most areas (379,304 sq. ft. for middle school/high school, plus 4,000 sq. ft. for a weight room and 6,200 sq. ft. for board office) and $450.00 per square foot for the auditorium (21,348 sq. ft.). Once you add the additional items on the attached summary, the total cost came in at $147,718,571 and was rounded to $147,725,000 for the ballot language.
2. Have any blueprints been created, or are we still using estimated costs based on square footage provided by the architect?
Answer: No blueprints have been created. This normally would occur after a bond levy is passed. The typical cost of an architect is around 7% of the project cost. Therefore, it would cost the district millions to have blueprints and specifications developed. It would not be fiscally prudent for the district to incur that expense without knowing if the voters will approve or reject the project. This process is similar to how we did Phase I (construction of Parkside and Riverview) and how most districts go through the process. The estimated cost is based on a cost per square foot as described above.
3. If the levy is passed, but the estimated construction costs or interest costs are higher than anticipated, will you reduce the size of the school, build only one school, or forge ahead with another tax levy to cover the shortfall?
Answer: If the project comes in over budget, the district has several options to mitigate that challenge. It can reduce the size of the project in terms of square feet or leverage funds from its continuous permanent improvement levy. There are no plans to go back to voters for an additional tax levy. Throughout design, there are several points where an independent estimator will prepare an estimate to see where we are at and the district can make adjustments as needed.
4, If you are unable to get a fixed price from the contractors, will you stop the project, and return any money collected from the taxpayers back to the taxpayers.
Answer: I have not heard of any school construction projects that did not receive any bids. If you know of any examples, please share. We just bid out a boiler replacement project for LaMuth Middle School and opened bids on March 14th. We received 3 bids for that project. Two of the bids were under our estimate. I guess in theory, if we ultimately do not issue bonds, we can direct the county auditor to not collect the levy. However, I have not heard of any examples of that situation. The district cannot legally collect the funds and use them for another purpose.
Thank you,
Gary A. Platko, CPATreasurer/CFO
Riverside Local School District
585 Riverside Drive
Painesville, OH 44077
www.riversidelocalschools.com
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Categories: Riverside S.D., Uncategorized