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Article 1: Operating Budget of $28,770,668 versus Default Budget of $28,979,335

Shall the School District raise and appropriate as an operating budget, not including appropriations by special warrant articles and other appropriations voted separately, the amounts set forth on the budget posted with the warrant or as amended by vote of the first session, for the purposes set forth therein, totaling $28,770,668? Should this article be defeated, the default budget shall be $28,979,335 which is the same as last year, with certain adjustments required by previous action of the School District or by law; or the governing body may hold one special meeting, in accordance with RSA 40:13, X and XVI, to take up the issue of a revised operating budget only. (Majority vote required.)  Note: Warrant Article #1 (operating budget) does not include appropriations in any other warrant articles.

What it means:  The FY 2021-22 SAU 21 proposed operating budget is $28,770,668 which reflects an increase of .66% versus the 2020 budget of $28,582,729 (+$187,939). The proposed budget is $208,667 less than the default budget.

Hampton is responsible for 47.1% of SAU 21’s appropriations.

Those in favor say:  There were both increased and decreased expense items that affected the operating budget for SAU 21 this year.

MAJOR INCREASES:

Retirement: +$503,178 The New Hampshire Retirement System (NHRS) increased the employer contribution for all teachers by 3.22% and all other employees by 2.89%.

Salaries – Certified Staff: +$756,875 Contractual cost of living adjustment (COLA) and step increases for certified teachers as part of the SEA collective bargaining agreement, and additional two special education case managers based on enrollments and student need.

Transportation: +$96,234 Transportation services for special education and regular routes.

Vocational Programs – Tuition: +$82,110 Tuition for students to attend Seacoast School of Technology due to increase in student enrollment and annual tuition increase.

MAJOR DECREASES:

Special Education Tuition: -$587,411  Elimination of out of district placement for students requiring special services.

Health Insurance: -$221,293 Utilization of health care expendable trust to under budget account by -$150K (to be used only if needed), a modest 3.4% GMR, and plan election changes at lower cost.

Information Technology: -$69,354 Reflects savings in information access fees, technology equipment, workshops/seminars, repair and maintenance, equipment leasing, contracted services, and supplies accounts.

Buildings: -$65,664 Reductions in Renovations, overtime salaries, auditorium improvements, equipment, heating fuels, and electricity accounts.

 Fiscal Impact: Using the example of a home valued at $400,000, adoption of the Proposed Operating Budget for SAU 21 will cause an increase in taxes of $9.41.  Take your property valuation divided by 1000 and multiplied by .024 to get the tax impact for your property (if Article 2 passes).  If Article 2 fails, the Default Budget will cost the homeowner with a $400,000 valuation $19.86.  It will be less costly to approve the proposed Operating Budget.

Note:  These costs for taxpayers are calculated at 47.1% of the appropriations, which is Hampton’s share.

Article 2: HVAC Upgrades – Technology Education Building ($325,000)

To see if the School District will vote to raise and appropriate the sum of 325,000 to continue the HVAC replacement project at Winnacunnet High School?  This appropriation will be used to upgrade the HVAC systems at the Technology Education Building. This project is part of the facility plan adopted by the school board. This will be a non-lapsing appropriation per RSA 32:7 VI and will not lapse until the project is complete or June 30, 2024, whichever is earlier. (Majority vote required.)

 What it means: Article 2 reflects the scheduled upgrade of the Technology Education Building to a functioning HVAC system. The project is part of the ongoing HVAC replacement cycle that includes incremental HVAC replacement as systems reach end of functionality; upgrades; controls integration; and duct cleaning.

Those in favor say: The HVAC replacement cycle helps minimize large one-time expenditures for multiple system replacements and levels the spending over multiple years.  The anticipated roof replacement has been delayed by one year, but must be acted upon next year.

Those opposed say: No one spoke against this Article at Deliberative Session.

Fiscal Impact:  A Hampton home valued at $400,000 would bear an increased tax cost of $ 16.27 in 2021 if SAU 21 Article 2 passes. Take your property valuation divided by 1000 and multiplied by .04 to get your cost. This decision is for the current year only.

Note:  These costs for taxpayers are calculated at 47.1% of the appropriations, which is Hampton’s share.