ANDOVER — Special Town Meeting voters will face raising $5.7 million to put the Bancroft Elementary School construction project back on target. If they say no, the town will ask again in April, this time for $7 million instead.
The School Building Committee finalized the budget shortfall yesterday at $5,814,029, which includes $4.3 million in bids coming in higher than expected due to cost inflation while the project was delayed by neighbors’ litigation for close to a year. The dollar amount will drop $100,000 due to remediation costs that were deemed unnecessary after the committee’s vote, according to Tom Deso, chairman of the committee.
Rejecting the measure will bring it back to voters at Annual Town Meeting in April, according to Deso. After contract bids expire on March 1 and go back out, the town’s expecting rebidding on the project to come in just north of $1 million higher than before. With other costs, the April vote would be for $6,982,029.
What remains to be seen is how the vote will be handled by the town. Officials are working with the state’s Department of Revenue to establish how much of the vote will be contingent on a fresh “exempt debt” ballot vote, assuming one is necessary.
The town took a similar vote in 2011 to fund the project on exempt debt, or borrowing paid for by raising taxes beyond Proposition 2 1/2 tax levy limits.
The DOR allows additional money raised for a project to be non-contingent, effectively allowing the prior debt exclusion vote to cover future exempt debt — but only to a certain point, according to Finance Director Donna Walsh.
Around 7 percent of a project cost increase can be covered by a non-contingent vote at Town Meeting due to construction inflation, Walsh said. The shortfall facing the school, however, far exceeds that at around 12 percent of the project’s final cost.