Clinton to Receive Higher Than Expected Reimbursement Rate for New Morgan School

After showing that renovating The Morgan School would be more costly than building a new school, Clinton is now set to receive a 43.96  reimbursement rate for the 'new build' project. This is an increase from the 31.4% reimbursement rate that was previously expected, and will now mean a total reimbursement of $28.5 million for the 'new build' project.

The State of CT School Construction Program uses a formula to determine reimbursement amounts for each town based on a number of deciding factors. Based on that evaluation, the town is eligible for a certain amount of reimbursements. Additionally, the level of reimbursement is different for a 'new build' versus a 'renovation' project. 

"Before the new school project went to referendum, the state reversed reimbursement rates for 'New Build' projects, which is what the new high school would be," said First Selectman William Fritz. "We were initially expecting to get a 44% reimbursement rate, but when they changed that statute, that rate dropped down to 31.4%."

However, if a town can prove that renovating a school is more costly than building a new one, they can earn that money back, Fritz stated. Clinton decided to explore that option to see if they could increase the reimbursement rate. 

"So, myself, the architect, the Superintendent of Schools, and the Chairman of the building committee, met with the Bureau of Construction Services to see how we should proceed, and they didn't know," said Fritz. "So, our people decided we were going to conduct an intensive study of the school and present 'renovate' versus 'build new' project estimates, making sure we were meeting the required regulations for each scenario, and then look at the cost difference."

Fritz stated that after this study, it was discovered that it would $3 million more to renovate the school than to build it new. 

"And that was a conservative estimate," continued Fritz. "That number realistically would probably be even higher."

"Next, I wrote letters appealing to the state legislature on the issue," Fritz said. 

Then, two Thursday's ago, the town was told that, after review of the construction presentations and following the various letters written, they were going to receive a reimbursement rate of 43.96%.

"We had estimated they would up our rate about 10%, from 31.4% to 41.4%, but they gave us the even better number of 43.96%," Fritz said. "That's about $5.9 million more."

In total, the town will receive a $28.5 million reimbursement for the 'new build' project, which currently, is right on schedule according to Fritz.

"We are right on schedule with where with where we expected to be," concluded Fritz. "All local issues have been cleared and after working out some additional details on construction design, we will meet with the state sometime in September. We hope to go out to bid sometime in October and break ground in January of 2014, with September 2015 set as the time to open the school's doors."