Manchester's share of the new Essex school would be about $50 million after state aid, boards are told

Manchester's share of a new Essex Elementary School would come to about $50 million after state aid, school leaders told the town's Select Board and Finance Committee on Monday.

That is an estimate. The state will not lock in its share until Dec. 9, after Manchester and Essex voters have their say at town meetings on Nov. 16.

The two boards met for more than three hours to get ready for the special town meeting. Finance Committee members said the school is the biggest spending decision the town has faced. One member said residents need clear answers soon.

"This is the largest expenditure that Manchester has ever faced by a long shot," one Finance Committee member said.

Why the state pays about 21%, not 37%

Board members asked why the state's rate is listed as nearly 37% when it pays only about 21% of the cost.

The project manager from Dore & Whittier, the firm that oversees the project for the district, explained it in steps. Manchester and Essex start at the state's base rate of 31%, which is tied partly to local income and property wealth. The district earns extra points for things like energy efficient design and keeping its buildings in good shape. That brings the rate to 36.93%.

But the state only pays its rate on costs it allows. It caps what it will pay for each square foot of building and site work, and those caps are well below what the school will cost. After the caps, the state pays about 21.4% of the total.

School leaders said the gap is about the same as it was for Manchester Memorial School, which was built with about $12 million in state money. They said the new school has little space beyond what the state requires: about 1,500 square feet, including two offices for current programs, after the gym was trimmed.

Asked whether dropping those extras would raise the state's share, a board member who ran the numbers said it would save only about $1.6 million. School leaders said cutting parts of the education plan would send the project back to the start of the state's process.

Why it costs so much more than Memorial School

Manchester Memorial School cost about $52 million. School leaders gave three main reasons the Essex school costs nearly twice as much:

The budget already came down. Estimates in September came in near $98 million. The building committee cut about $3.5 million by changing some outside materials and paving, and a smaller gym bleacher area, to reach $95.3 million. The committee kept the ship like arch over the main entrance. The estimate carries a 2% construction contingency, 8% for design and 5% for other costs.

How the vote works

Voters will be asked to approve borrowing for the whole project. The amount is a ceiling, and the borrowing must be reduced by the state grant, school leaders said. Each town then votes again at the ballot to raise taxes outside the state's Proposition 2½ limit to pay for it.

That timing worried some. "We are not even going to have a vote by the authority until December the 9th," a resident said, "and yet you'll be asking us to go into a meeting on November 16th and approve" it. The state board meets Dec. 9 to approve the school's design and budget, the day before the Dec. 10 ballot vote.

Finance Committee member Dean Nahatis offered a rough idea of the yearly cost. Borrowing $40 million for 30 years at 4% would cost about $2.3 million a year, he said. That is about 12% of the town's operating budget. The town now pays about $3.2 million a year on its debt. Others said to wait for the bond adviser's figures before using any numbers.

School leaders said a mailed booklet will go to every home before the vote, as it did for Memorial School, with a simple chart of each town's cost. Answers to common questions are on the district's Essex Elementary building project page. They asked board members to send technical questions so they can add them.

The rest of the special town meeting warrant

The boards also went through the other articles likely to come before the Nov. 16 meeting. The Select Board sets the final list Oct. 19.

Harbor work comes in under budget

The low bid for the town's harbor project, from BTT Marine, came in at about $8.3 million, town officials said. The town had about $8.5 million from grants and town money. The bid covers work at Reed and Morse and at the Rotunda this winter, with a bonus in the contract for finishing the Rotunda by Memorial Day. Dredging would come the following winter.

Also at the meeting

• National Grid. The board approved underground electric lines and a new pole at 40 Lincoln St., for the town's Lincoln Street well, and lines to 9A Ashland Ave. for two new townhouses. Members asked how traffic would get through narrow Ashland Avenue; police will decide on details.
• Mooring appeal. Jim Starkey of Tucks Point Road told the board his appeal of a mooring assignment has not been heard within 45 days, as town rules require. Chair John Round said Starkey would hear from him this week.
• Trash and compost. Town officials said Black Earth, the town's compost hauler, is now tracking which homes put out compost, and is looking at a private, paid trash pickup for people who cannot manage the new carts.

How we did this

Cape Ann Current watched the town's meeting video online and checked names against the town's minutes and agenda. Dollar figures are estimates given at the meeting and may change. This story was produced with the help of AI tools and checked against the documents listed below. If you see an error, tell us at [email protected].

Earlier coverage: Manchester boards meet Monday (Oct. 2), the meeting preview; How the $95 million Essex school compares (Oct. 7), with a tax calculator; Manchester Select Board roundup (Sept. 30); Boat accident off Manchester (Oct. 4).