As early bond voting begins, McEntee, Marran say public education is the ‘heart’ of SK

During interviews with the elected panel that recommended the vote, two expressed uncertainty about full-throated endorsement. The Democratic bloc of President Rory McEntee, Vice President Michael Marran and member Patti Alley gave unqualified endorsements.

Council members Deb Bergner, a Democrat, and Greg Sweet, a Republican, distanced themselves during interviews about whether they support this proposal and spending plan that includes a May 7 all-day referendum.

Meanwhile, tensions are rising among supporters and detractors as happened in 2021 when voters by a 2-to-1 margin rejected an $85-million bond referendum that included moving the high school into a renovated Curtis Corner Middle School. That building is now closed.

“This could be the final frontier for a high school. If this gets rejected, the town might need to utter the

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dreaded words “regionalism” as a potential solution to high taxes residents simply may not want to pay,” said one long-time advocate in school funding who didn’t want to be named.

He feared of backlash for mentioning a regional approach — opposed by many in town — for cutting costs and getting a better high school.

When the Curtis Corner approach met overwhelming rejection, the Town Council’s then president remarked about the tension-filled process around taxes and what voters are willing to pay for schools.

“I believe the plan for moving the high school to Curtis Corner presented a good strategy for improving our schools for what would have been a bargain, but it was the product of a very messy process, and I think it died the death of a million cuts,” said Abel Collins, now a former Town Council president.

However, last June, voters reversed course and by a nearly 4-to-1 margin crushed an insurgent grassroots attempt to slice $1.5 million from nearly $56 million in taxpayer funds the Town Council and School Committee approved for school operations next year.

Coupled with this strong history are upcoming municipal elections in November. Elected officials want to avoid a repeat of the 2021 disaster, blunt any repercussions at the polls in seven months and they hope last year’s goodwill by voters continues in this vote.

McEntee and Marran this week offered their opinions for the reasons voters should approve a new high school that comes with a total 16% tax increase — compared to current bills — by 2030 when calculating other town operational costs and start of the repayment of bond debt.

Even with differing points of view among some panel members on various spending and taxing scenarios by members, McEntee and Marran have focused the necessity of the bond and a new school.

In a Q&A last week (bit.ly/SKhighschoolvision), a school official and project consultant discussed the vision for a 21st-century high school. For more voting information, visit bit.ly/highschoolbond.

Below McEntee and Marran answer some key questions about this project.

Do you support the maximum $150 million bond for a new high school?

Yes. We support issuing up to $150 million in general obligation bonds to construct a new high school. Public education is the heart of our community, and we must invest in education. The current high school is 70 years old and won’t meet students’ needs for a 21st century education.

The town needs a new facility that prepares students to compete in the coming economy. Our opportunity to achieve this is now. Simply put, the students deserve the best we can give them. With the state reimbursements to help cover the costs, this deal is a no-brainer.

Context also matters. In 2021, the voters rejected an earlier plan with an estimated cost of approximately $79 million, to convert the Curtis Corner Middle School building (now vacant) to use as a high school.

Objections to that plan at the time included a desire to keep the high school centrally located in town at Columbia Street, and concerns that a “rehab” of the CCMS building would be inadequate under the circumstances.

It has taken three more years to address those and other concerns, to assemble a new proposal that is supported by the RI Department of Education and eligible for $64 million in state aid.

Furthermore, the current high school building would require extensive modifications, and would still be inadequate to meet the educational needs of students. For example, much of the current building’s walls cannot be moved to create better classroom spaces.

According to the School Building Committee’s website, it “evaluated multiple options for the limited repair and renovation of the existing high school facility as well as multiple new build options. Ultimately the SBC determined that the best value for the community would be a new build option on the existing Columbia Street site.”

Do you agree that a $150 million high school bond could lead to a 16% or higher increase in property taxes over five years when use of the bond money starts?

Yes, the project, combined with regular expenses of the town’s budget, could amount to a cumulative increase in taxes of 16% over a five-year period, fiscal year 2025 through fiscal year 2030.

The (bond only) increase in taxes due solely to the expense of building a new high school will be approximately 8%, spread out over a five-year period. Separately, the town’s regular budget has been averaging only a 1.7% increase in taxes. That average, over five years, would also amount to a total of 8.5%.

Do you think residents living in average-assessed homes today have the income to support this bond project and other continuing town operations expenses?

As the town seeks to provide continued quality services and expand those services, taxes will increase to support it. That being said, the town council always needs to be cautious not to overburden taxpayers. As the bond begins to roll out, the council needs to be diligent to limit town operational growth to only those (expenses) necessary.

For projection purposes, we anticipate 1.7% annual growth in town operations for the fiscal years 2025 through 2030.

If the council reins in this projected growth through adoption of its annual budget, we can lessen the tax impacts. There is also the potential for growth of the tax base as we try to improve housing availability.

Moreover, it is a goal for the town council to find ways to offer tax relief to full-time residents with the greatest need, through study and analysis of a homestead exemption.

Some critics say that large tax increases will continue to push out middle-class residents and make South Kingstown unaffordable. What do you say to them?

The town is actively working on various measures to address affordability issues. We currently have a tax abatement program for accessory dwelling units.

We are seeing increased accessory dwelling unit construction and those taking advantage of the tax abatement. Recently, the town council decided to allocate 100% of real estate conveyance fees to an affordable housing fund.

At the end of the fiscal year 2025, we anticipate this fund to reach $700,000. These funds will be disbursed to affordable housing initiatives, including construction costs.

As mentioned, the passage of a rental registration ordinance is our first step toward gathering information that will lead to a homestead exemption that provides tax relief. These are just a few policies the council is working on to improve affordability.

Some people say that higher taxes might lead them to rent — rather than live — in their homes. What are your thoughts about that?

Owners have the right to use their property how they see fit. If they choose to rent out their home, they are entitled to do that. But the town is actively working on ways to make South Kingstown more affordable.

In particular, the town council recently enacted a short-term rental registration ordinance. The purpose is to gain a more accurate understanding of the makeup of South Kingstown homes (i.e., primary residence, rental, etc.).

This information will allow us to make better policy decisions, including a potential homestead exemption. With the information, we can determine whether a homestead exemption can work and how it can work. To give real tax relief, we narrow the eligible persons and provide relief to those most in need.

Is there any guarantee on a specific tax rate after full payments come due?

No decision on any public issue can offer a guarantee about conditions six years in the future. From fiscal years 2025 through 2030, on a median assessed home value of $468,300, the annual increase in taxes solely to cover the debt services of the bond will be just over $60 per year.

In the fifth year, the accumulated increase over that period is about $318. After fiscal year 2030, taxes will not be increased in relation to the bond. For planning purposes, the town anticipates only 1.7% annual growth in municipal operations (based on the last few years’ budgets), which will, if accurate, contribute to an increase in taxes as well.

Again, after fiscal year 2030, there will be no tax increase solely to cover debt service costs (the school bond).

It’s important to keep in mind that while the town anticipates a growth of 1.7% in municipal operations each year, the town council can always rein in the growth of municipal operations through its annual adoption of the town budget, especially in light of the annual debt service costs to cover the bond.

How do various “assumptions” and “speculations” fit into explanations about the bond’s short- and long-term projected costs?

The town’s assumptions underlying the projected fiscal impact of the $150 million bond are sound. It anticipates a project cost of $150 million, 1.7% growth in municipal operations, and no increase in the property tax transfer to the school department for fiscal years 2025 through 2030.

Each year, the town council adopts the budget and can rein in the increases in municipal operations to realize less than 1.7% annual growth. Moreover, the property tax transfer to the schools has remained the same in the last five fiscal years.

Assuming this to be the case for the fiscal years 2025 through 2030 is reasonable in light of the declining student enrollment, the continuing annual reduction in full-time employees, and the school department’s efforts to be fiscally responsible as the town incurs debt service costs.

The most misleading “assumption” is that the School Department will receive budget increases from the Town of $1 million per year, every year, for each of the next five years.

There is no factual basis for this assumption. The fact is that the council has held the school transfer unchanged for five years, including the upcoming 2024-2025 school year. That assumption is simply designed to mislead the voters.

Finally, it is important to note that voters’ decision on this bond issue is not just about tax dollars. It is also about the South Kingstown community, and the value we place on public education.

Education is expensive. But it is also an investment in the future of our community. The physical environment in which teaching takes place matters. Resident volunteers and paid professionals have spent years studying the town’s needs and have recommended that this new school is necessary for our students to improve the quality of education in our town.

Bonds are behind-the-scenes financial obligations residents often forget, but are part of tax bills. Municipalities can face a variety of challenges with them. What are your concerns, if any?

The town of South Kingstown’s financial position is strong. It currently has very little debt and is in a good position to take on the debt to finance a new high school. Our credit rating is one of the strongest in the state for municipalities, making any bonds we issue attractive to investors.

For example, unlike most towns in RI, we have NO unfunded pension liability, due to decades of conservative fiscal management. The issuance of these bonds may affect the town’s credit rating, but only in a small way. It will remain atop the higher-rated municipalities in Rhode Island.

Moreover, the strong fiscal management by the town over a long period has led us to the ability to take on big projects such as this one. We understand what the debt service payments over the life of the bonds will be at varying interest rates and the amount of tax revenue needed to support it.

The $150 million figure is the absolute maximum asked for — the School Building Committee has included in that figure $18 million for cost escalation and contingencies, which may or may not get realized. The project may only cost between $133 million and $150 million.

In fact, the construction manager’s compensation structure places the risk of overruns and increased material and labor costs on the construction manager. Essentially, the risk of loss is placed on the construction manager, allowing the town to lock in its costs.

Furthermore, there is never a perfect time to take on debt because no one can predict the future. But given the town’s need for a new facility, and the fact that the state aid for the project will decrease substantially if we do not act before June 30, this is the best time to act. The cost for a new high school years from now is likely to cost the town even more.