2. Avon High School Proposed Renovations and Additions September 7, 2006

3. Tonight’s program Overview of Project Question and answer session

4. Overview of Project Why are we here What has happened since June 2005 Why Project is still needed What’s included in Project Project cost comparisons Projected tax impact Consequences if referendum is defeated Revised timetable

5. Why are we here? Followed previously used process –Referendum based on schematics ($50,000) –Final architectural drawings ($1 million) Process successful the last 10 years Not successful this time due to conditions beyond control of Building Committee Need still here due to present and future high school enrollment

6. What has happened since June 2005? Final architectural drawings developed Project size unchanged –67,500 sq. ft. of additional space –13,500 sq. ft. of renovated space State approval –Submitted in December –Approved in June Bid process Guaranteed maximum price Need additional $4.7 million

7. Why Project is still needed Current and projected enrollment exceeds building capacity –Additional classroom space needed to accommodate increased enrollment (from 900 students to 1,300 students) –Additional space needed in core facilities such as cafeteria, gymnasium, library to accommodate increased enrollment (designed for 600-650 students; not increased in 1997 project)

9. What’s included in Project New construction— 11General classrooms 1Computer lab 2Science labs 3Special education classrooms Gymnasium and team locker rooms Cafeteria Instrumental music room Expanded fitness/weight room

10. What’s included in Project Renovated spaces— Kitchen and serving area Nurse’s office/clinic Student support services (Psychologist, social worker, occupational therapist, speech and language therapist) Four stairwells Four lavatories Hallway fire doors

11. What’s included in Project Capital improvements— Re-roofing existing building Replace existing gymnasium floor Stage curtain/rigging Refurbish/replace lockers Replacement of HVAC units Upgrade to video/audio/data infrastructure New food service equipment Accessibility of football field bleachers

13. Floor Plan

14. Project cost comparisons BudgetGMP 4/1/20058/2/2006 Asbestos abatement$20,000$125,000 Site development3,028,4003,500,000 New construction13,999,50016,719,835 Renovations1,426,1002,825,780 Capital improvements2,308,0002,115,000 Building permits4,0003,800 Construction Manager fees450,000536,135 CM reimbursables800,0001,048,800 CM contingency962,000600,000 Total construction costs22,998,00027,474,350 Owner's soft costs3,000,0003,223,650 Total project cost25,998,00030,698,000 State reimbursement(6,408,614)(7,147,512) Net cost to Avon$19,589,386$23,550,488

15. Causes of increased costs Rapidly increasing materials costs Material availability Increased energy costs Unexpected construction requirements by SDE Revised timing of project

16. Issues for the Board of Finance Can the Town manage the additional debt? If so, what will the additional and total tax impact be on each household?

17. Financial facts & figures Avon’s Grand List is $2.2 billion Town collects 99.97% of property taxes History of aggressive pay-down of debt Avon’s triple A bond rating

18. Outstanding Debt (as of July 1, 2006) G.O. Bonds (Long-Term Debt) FY Beginning Original Debt FY Ending Date Purpose Issue Outstanding Maturity 1/15/94 RBS Renovations $5,670,000 $1,200,000 2009 9/15/97 AHS Renovations 4,300,000 1,760,000 2012 9/15/97 APD Renovations 1,800,000 740,000 2012 1/15/98 AHS Renovations 5,825,000 2,700,000 2012 7/15/98 AHS Renovations 6,915,000 3,765,750 2013 7/15/98 Sewer Interceptor 550,000 299,250 2013 7/15/02 Fisher Farms Open Space 1,295,000 932,000 2016 7/15/02 Thompson Brook School 14,245,000 10,163,000 2016 TOTAL BONDS………… $40,600,000 $21,560,000

19. Outstanding Debt (as of July 1, 2006) Bond Anticipation Notes (Short-Term Debt) Note FY Beginning Original Debt FY Ending Date Purpose Issue Outstanding Maturity 3/26/03 M.H. Rhodes $1,500,000 $1,000,000 2007 6/20/05 AHS Ren. $9,000,000 9,000,000 2007 Total Notes……… $10,500,000 $10,000,000

20. Statutory Debt Limitation June 30, 2006 The Base is the total tax collections, including interest and lien fees, received in the previous fiscal year. The Base for Avon is $51,988,605.

21. Statutory Debt Limitation June 30, 2006 Comparison of Debt Limitations with actual Avon Debt: Gen. Purpose: 2.25 x Base = $116,974,361$5,112,000 Schools: 4.50 x Base = $233,948,723 $50,398,984 Sewers: 3.75 x Base = $194,957,269 $293,156 Combined Max: 7.00 x. Base = $363,920,235 $55,804,104 This includes debt actually incurred (as shown on pages 17 and 18) and debt authorized but not yet issued.

22. Financial facts & figures Town will use a mix of Bond Anticipation Notes (“BANS”) and Bonds Town has flexibility in scheduling principal and interest over the life of the loan

24. Potential upcoming projects (rough cost estimates, subject to revision) Town Hall Bldg. Renovations$2,000,000 (est.) Library Expansion$7,500,000 (est.) Fisher Meadow Ball Fields$1,000,000 (est.) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Fire Station/Training Facility$5,000,000 (est.) Secret Lake Water Mains$1,500,000 (est.) Open Space Preservation ??? New Elementary School ???

25. Financial facts & figures Debt service in the FY 06-07 budget: $5,038,337 Annual debt service will peak at $5.5 million in FY 08-09 and then decline This level of debt service is manageable and will not jeopardize the Town’s credit rating

26. Factors in tax impact statement Estimated interest rate (5.36%) Life of borrowing period (19 years) Frequency of revaluations (5 year cycle) Potential for Grand List growth over life of borrowing

27. Property statistics About 6,600 houses and condos in Avon About two-thirds have an estimated market value of $400,000 or lower Median assessed value is $202,470

28. Selection of model properties Based on assessed valuation, not market or desired sales price Assume assessed value will increase at same rate as Grand List following each 5-year revaluation Then model properties at 25 th, 50 th and 75 th percentiles

29. If Project is approved: tax impact over 19 years Property Assessment Percentile: AdoptedProposed TotalAvg./ 20052006CostYr. 25 th $1,755.82$357.23$2,113.05$111.21 50 th $2,419.69$492.29$2,911.98$153.26 75 th $3,450.22$701.95$4,152.17$218.53

30. Tax impact example Estimated market value of home$285,715 Home taxable assessment$200,000 (70% of estimated value) Tax impact over 19 years— Adopted 2005$2,390.18 Proposed 2006 486.36 Total$2,876.54 Average per year $151.40

31. Determine your own tax impact over 19 years Total proposed borrowings — Multiply your assessed value by AdoptedProposed Total 20052006.011950.00243.01438

32. Additional operating costs Added space costs— Utilities, custodial/maintenance, insurance First year after construction$425,000 Each subsequent year$ 11,000 Added educational costs— Teaching personnel, instructional materials and supplies, equipment Average annual increase$340,000

33. Consequences if referendum is defeated Six portable classrooms needed in fall 2007; more in future years State does not reimburse for portable classrooms Capital improvements will be capital projects in future Core spaces cannot accommodate increased enrollment (library, cafeteria, gymnasium) Significant additional architectural fees and other costs for changes in scope and redesign Increased construction costs are highly probable State reimbursement may be less in the future

34. Revised timetable October 11, 2006—Referendum 6 am-8 pm at Avon Senior Center November 2006-summer 2007— Construction of cafeteria and gymnasium Summer 2007-spring 2008— Construction of new classroom addition Late spring 2008— Project complete

36. Avon High School Proposed Renovations and Additions