Madison's Board Of Selectman Transfer Funds To New School Project

MADISON, CT – After revising the cost estimates for the new school construction to include the design development plan and additional classrooms, the new school project had a shortfall of about $3.5 million to $5.2 million.

“We have a potential shortfall of anywhere from $5.9 to $7.5 million based on the design plan put together, but a lot of that is the cost of inflation that has hit us,” First Selectwoman Peggy Lyons said. “After conversations, we know that we added additional classrooms as well, adding 2.4 million into the budget for this.”

Lyons said the board of selectmen had approved appropriating 2.4 million from the undesignated fund balance to the new school project at their last meeting. But she told the board the new school project needs an additional $3.485 million to cover the shortfalls.

Lyons added they are receiving an additional $6.5 million from the state to reduce their bonding needs on the new school construction project.

The Board of Selectman unanimously approved to transfer 3.485 million from the Polson Project to the new school building project during their meeting on June 26.

The 3.485 million is coming from the Polson Project, which Lyons said the Polson Project had a surplus of $5 million.

“So, if we transfer money from Polson to the new school project, it still leaves us a surplus ($1.5 million) and allows us to do the auditorium upgrades and modernize the HVAC system.”

Graham Curtis, the new elementary school building committee chair, told the board of selectmen the new school project has three pots of money as a contingency, but only one of which is the town’s money.

The first is a design and pricing contingency of $2.2 million, but Curtis said the money would go to zero after completing the design. The CM contingency for 1.1 million is a contractual contingency with the contraction manager Curtis explained, and the third owner’s contingency of $5.2 million is what the town can use.

“We don’t have to spend that money, but we don’t know all the risks until we are closer to being off the ground,” Curtis said. “It was recommended, and I would concur that we shouldn’t spend that contingency. After the bids open and after we’re assured there are no problems, we can look to return some of the money.”

Lyons said the surplus in the Polson Project is not to have geothermal at Polson Middle School. According to the presentation during the board of selectman meeting, Geothermal at Polson Middle School would increase the project by $5 million.

Selectman Scott Murphy said the geothermal at Polson Middle Schools wasn’t part of the original plan and was introduced later.

“We are injecting geothermal into the conversation, which I don’t think it’s a bad thing, But I don’t think it was ever part of the scope in the first place,” he said. “The voters did not put forward a vote on geothermal. We are adding it into the conversation.”

Lyons said the board would need to decide on geothermal in the summer, but the new school needs the transfer for the new school building committee to go out to bid.