Mayor recaps facilities plan and issues statement following 8-6 vote by aldermen to approve Phase 1

MANCHESTER, NH – On Tuesday night the Board of Mayor and Alderman voted to approve Phase 1 of the long-term school district facilities plan. The 8-6 vote followed 90 minutes of public comment.

Mayor Jay Ruais on Wednesday issued a summary of events leading up to the Tuesday night vote along with a statement.

Phase I Background:

• In 2023, the Manchester School District (MSD) received an additional annual Financial  Adequacy Aid appropriation of $35,223,387 from the NH Department of Education

• In November and December of 2023, Phase I of the Long-Term Facilities Plan was approved by the Board of School Committee (BOSC) and Board of Mayor and Aldermen (BMA) which would renovate the city’s four middle schools and build a new Beech Street School across the street from its current location. A new park would be constructed on the existing Beech Street  School location, and paid for by the MSD

• As part of Phase I, a $290 million bond was approved by both boards to finance this project. Of the $35,223,387 in new annual State Adequacy Aid, $17.7 million annually was set aside for the  purpose of financing the bond. Manchester received $96.5 million in State Adequacy Aid in  FY25, and is projected to receive additional aid this year.

• The Henry Wilson Elementary School was closed in June of 2024 due to its severe state of  disrepair and unsuitability for educational purposes. This closure placed approximately 400  students in modular classrooms outside the McDonough Elementary School and the Beech Street  School. The Phase I plan calls for these students to be placed in the new Beech Street School.

• In recognition of declining enrollment and planning for the future, two schools have been closed  in recent years.

Mayor Ruais’ Statement:

“In 2023, under the previous Board of Mayor and Aldermen, Phase 1 of the Long-Term Facilities Plan was released. I opposed the plan then because I believe the Adequacy Aid the City of Manchester School  District will receive annually could be spent in better ways for our children. I continue to hold this belief.

On November 19, 2024, a proposal came before the BMA to approve the construction of a new Beech  Street School and a new park. I did not support this measure because there were outstanding questions  that needed to be resolved. Especially for a project of this size, it is not unreasonable to request more time  to ensure we are doing our due diligence. My primary questions revolved around the potential loss of  Adequacy Aid, and the placement of a new high school. These have been answered. Additional questions  regarding parks in the area during the interim construction have also been answered. There are two in the immediate vicinity, children will not lose access to green space during construction. Lastly, there were  questions regarding costs and feasibility of alternate plans. These too have been answered.

The question before the city is, where do we go from here?

Chapter 33 of the Municipal Finance Act, Section 33:8 Part A clearly states, ‘a vote to rescind (the bond)  shall not take place less than five years after the vote to authorize the bond or note.’ Section B also requires  that ‘the vote to rescind must pass by the same majority required…to adopt a bond or note.’ In this case, 10 votes are required to rescind the bond and we must be five years beyond the original vote to make any changes. Since neither condition can be met, this bond cannot be rescinded.

Bottom line: The MSD has the authority to spend $290 million. Of that $290 million, approximately $199  million is going to the renovation of the four middle schools. That work has continued. It is important to  note that this project will not impact the city’s tax rate, no city funds will be used to finance this project. State Adequacy Aid to the Manchester School District is not being cut, and is currently projected to  increase this year over last. Additionally, if in future years, the state was to cut this Adequacy Aid, plans  are in place for the MSD to cover the differential with the use of an expiring bond from the City’s  previous renovation project. Trust fund dollars can also be used.

The cost of renovating the existing Beech Street School ($83.28 million) to house the approximately 400  students currently in modulars is greater than the cost of building a new school ($81.5 million). The  Henry Wilson Elementary School is closed, and it would cost $53.2 million to build a new school on this  site. Also, to undertake these changes would require the taking of homes in the area through eminent  domain and still leave no recreation space. For these reasons, students will not be returning to this school.  Renovating Beech Street School and McDonough Elementary School would cost $108 million. Were we to go down any of these routes, these additional costs would require the BOSC and BMA to issue a new  bond to cover the added expenses.

Any change to the plan that was approved and passed in 2023 under the previous BMA and BOSC would  require approval from the sitting BOSC. Additionally, costs of the project increase by approximately  $250,000 every month. Any increase in cost to the project, requiring further bonding, would have to be  passed by the current BMA and BOSC. These are not cost-effective, time sensitive alternatives, that will  permanently place these kids in a school and get them out of the modulars. We cannot rescind the bond,  and absent this hypothetical plan, these kids will be left in modulars in perpetuity, and costs will spiral out  of control. That is entirely unacceptable.

While I did not support the plan approved by the previous BOSC and BMA, the focus of this, and future  boards, should be on delivering this project on time and under budget. For these reasons, and those listed  above, I supported the BMA’s action last night to approve the land swap and construction of a new Beech  Street School and park.

Looking ahead, I will oppose Phase 2 of the Long-Term Facilities Plan because it is clear there is no path  to pay for it that will not require city taxpayers to foot a bill that will cost more than $2 billion dollars.”

Board of Aldermen meeting, Jan. 21, 2025.