The High School Vote -- Round One

Well, it was a hot time in the old town on Thursday night. Mayor Ragucci called a joint convention, complete with a special meeting of the Common Council, to add an additional $22M to the original appropriation slated for building a new high school. Assembled were a number of financial professionals, including an advisor from the city’s bonding company, a consultant providing city “growth” predictions, as well as the budget director, the auditor and the assessor, former Speaker of the House George Keverian. Also in the mix was an officer from RF Walsh, the company managing the high school project. Missing from the meeting were Common Council President Wayne Matewsky and Councilors Hickey, McKinnon and Napolitano.

The meeting started well enough. The mayor explained that the Department of Revenue had advised him on Tuesday morning that he would need the authorization of city government to go forward with the project. Although the State School Building Authority originally didn’t think that was necessary, provided that the total amount due from the city was available in the original appropriation, the City Solicitor felt it was prudent to contact the DOR and abide by their ruling. While the city wouldn’t actually have to borrow $82 million, due to the increase in reimbursement from the state to nearly 84%, the appropriation had to reflect the total. While the appropriation would be increasing by over $22 million, the loan would cover the 16% that the city would have to match with the 84% expected from the state, as well as a portion of the increase in costs. The payment each year for the school would be $1.7 M, based on a loan amount of $24.5M. The affordability of the plan rests on the stabilization fund, which is expected to total $13 million by 2008, due to the sale of the City Yards and the sale of the high school.

A number of members expressed their displeasure at having to vote in such a short time frame, not to mention that they were being asked to vote “after the fact,” given that Suffolk had already broken ground at the high school. Fireworks erupted between Alderman DeMaria and the mayor, who objected to Mr. DeMaria’s interruption of a Councilman Sal DiDomenico during his statement; this was unfortunate and neither one of them looked better for it. Alderman Marchese, long an opponent of the high school project, stayed focused on the financials, and looked at the total interest of project. Most of us, however, wouldn’t borrow a dime to buy our own homes if we stayed focused on the interest of a 30-year mortgage. Alderman Van Campen and Alderman DeMaria wanted $30,000 to bring in an outside consultant to help them make their decision. The mayor objected to spending the extra money, stating that they could avail themselves of the financial professionals in the city. A number of councilors spoke on the project, most notably Councilor Chuck DiPerri, who asked whether the increase in appropriation was more of a technical issue as opposed to a financial one, provided that the funds currently on tap for the project were already in place with the original appropriation. Councilor Cardello was worried about finances and asked several tough questions of the mayor. Councilor Gover challenged the mayor to observe the same discipline that he asked of the councilors, and asked him what he would do should rising costs threaten the stability of the project or the city‘s finances. Councilors Smith, Cardello, King, Sierra, along with Aldermen Nuzzo and Ragucci all spoke favorably of the project, to the applause of many in the audience, although Councilor Sierra expressed his concerns about the level of “hate’ and “disrespect” that has been dividing city government and hoped that everyone would begin to work together. Councilor Cardello seconded that emotion. Councilor Hicks brought up the unfortunate problems with the other schools and hoped that history would not repeat itself. The mayor pointed out that the city had a new contractor in place, and was confident that the high school project would be successful. Alderman DeMaria requested the cost of rehabbing the old high school for the next meeting. The mayor invited all members of city government to call his office or department heads between Thursday and Monday, and that he was willing to meet with any of them - with the exception of Sunday, which is Mother’s Day.

The matter was referred favorably to the Common Council for a special meeting that followed the joint convention. A unanimous 14-0 vote preserved the high school project for this week. It remains to be seen how the Board of Aldermen will vote, given the contentious relationship the Board has with the mayor.