The ways in which the Gorham School District pays for major capital expenditures was the focus of a discussion at the last Town Council meeting resulting in the Council’s decision not to authorize a referendum question for the November 6 election. Voters would have been asked to approve borrowing $2,100,000 to replace the heating, ventilation, and air conditioning system at the Gorham Middle School.
As explained by Norm Justice, the district’s director of facilities, the heat pump system installed at GMS in 2002 had a projected life of approximately 19 years and some elements are beginning to fail. The geothermal system which both heats and cools air is nearly twice as energy efficient as the natural gas systems in other schools. In 2010 the district installed a similar, even more efficient system, at Great Falls Elementary School. The proposed project was to upgrade the GMS system and replace the 120 aging heat pumps units over the summer months. If bid in January 2019, the project could be completed in two or three years.
Most councilors agreed that the geothermal HVAC will need to be upgraded with new improved units, but objected to asking voters to approve funding the project with bonds to be paid off over ten years. The bond payments would have been included in the district’s yearly budgets. Those voting for the referendum were Councilors Stelk, Hager, and Smith. Councilors Hartwell, Phillips, Shepard, and Benner voted against funding the project through referendum.
In explaining her no vote, Suzi Phillips said, “I believe that voting to send something to referendum is perceived as a recommendation from the Council. I believe it is my responsibility to look out for the taxpayers.” She added, “There are other school-based referendums coming in the future and we need to keep a balance in regards to the tax burden.”
The Town Council is expecting a referendum request to fund the renovation and expansion of the high school next year. Questions about how to pay for capital improvements have plagued the School Committee and the Town Council for years. The Town Council can make reductions to the School Committee’s annual district budget, but can not tell the committee what to eliminate.
Both the Town Council and the School Committee believe that, ideally, annual funding levels for capital improvement projects (CIP) should be 2% of the value of the district’s assets, or for Gorham, about $2 million. However, when councilors vote to reduce the proposed budget, School Committee members usually reduce CIP funding rather than cut student services. The result is either deferred maintenance or requests for additional funds. This year’s budget includes $509,000 for capital improvement projects.
According to Stewart McCallister, vice-chair of the School Committee, “We are going to continue to maintain the current system, replacing the equipment as it fails.” He added that “while it is not the most cost effective method, it will have to suffice until we can revisit the project as a whole at a later date, most likely after the high school referendum.”