Leftover money

MAT-SU -- Several recent school projects have been completed millions of dollars under budget -- millions of dollars that could be used in other places. The interim superintendent of schools, however, is arguing the money should be used to start paying off the taxpayers' debt.

The Mat-Su Borough has nearly $5.8 million left over from the construction of Meadow Lakes Elementary, Teeland Middle and Larson Elementary. During a recent joint meeting of the Mat-Su Borough Assembly and school board, the two groups discussed how that money could be spent.

Because several other bond projects, including Houston High, Sherrod Elementary and additions and remodels at Burchell and Wasilla High are still underway, the borough

anticipates directing about $1.5 million towards these. The rest, however, is up for grabs.

Interim Superintendent Bob Doyle says he would like to see most of the remaining $4 million put toward the debt incurred to build the schools.

"That would be prudent … It's saving people money," Doyle said.

The state will pick up 70 percent of the total $100 million tab, and the remaining 30 percent will fall on the shoulders of borough taxpayers. With additional Mat-Su school construction projects being considered for a statewide general obligation bond on the ballot this fall, Doyle said it might be wise to start paying off the existing debt ahead of schedule.

"The only other place I would really support [using the funds] is at Wasilla High School … because they had a lot of things they were unable to do," Doyle said. Window upgrades were among the items that had to be set aside in order to stay within the budget on the Wasilla High remodel. Doyle said it might be worth reviewing the original priorities of that project to see which could now be addressed with the extra funds.

There are some constraints on how the money can be spent. To use the money for anything other than projects included in the same $100 million bond package Mat-Su voters approved several years ago, the borough would have to go back to the voters. In addition, any redirecting of funds, even to projects such as Wasilla High that were included in the original bond, must be approved by the Department of Education.

"And from my experience it's not as if DOE is going to say, 'Oh, you have extra money and you want to spend it this way? OK,'" Assembly member Sara Jansen said at last week's joint meeting.

There is also the possibility that some of the money may have to be spent settling claims on the Houston High School project. The school was originally set to open this year but because of delays won't open until next fall. Public Works Director Jim Swing told the assembly and board that the contractor on the project, Wolverine Supply Inc., has reserved its right to sue the borough. What those claims will be and how much they could ultimately cost the borough remains to be seen, but Doyle said he is hoping none of the leftover bond money has to be directed in this way.

"I would hope it could be used to begin paying off those debts early," Doyle said.

Opinions appeared to be divided among those at the meeting last week, however. Assembly member Jim Colver suggested some of the money could be used to upgrade carpet at several schools.

"There's a lot of ratty carpet left out there," he said.

Jansen and school board member Larry DeVilbiss, however, seemed more interested in knowing how the money could be used to begin reducing the debt. Borough officials explained that the money would go toward the total $100 million, including both the state and borough's portions.

Others at the meeting wanted to know how nearly $6 million had been saved on the projects.

"Where were we so frugal?" asked school board member Linda Menard.

Doyle said the money had been saved by using prototypical designs and utilizing "value engineers."

The prototypical design, Doyle later explained, is an established school design used again and again and, because contractors are familiar with it, results in less change orders and confusion.

The value engineers are experts who review the plans and identify areas where money can be saved. For example, a less expensive but equally useful type of hardware could be used on the doors. Doyle said this type of close analysis of the entire construction project has enabled the borough to save hundreds of thousands of dollars.