Gardner school project came in under budget; city to reassign borrowing to capital improvements

The new Gardner school building project came in roughly $8.5 million under the originally authorized budget, Mayor Nicholson said, and the city will reassign elements of the $90 million bond to other long-lived capital projects.

The mayor credited the Massachusetts School Building Authority’s additional grant support, the new school building committee’s financial oversight and the city’s bond counsel work. Because the loan taken for the new school was a 30-year loan, bond counsel and the Massachusetts Department of Revenue determined the city could reassign funds to other capital projects that qualify for a 30-year term, the mayor said.

Why this matters: The under-budget result and reallocation can allow the city to complete deferred capital work sooner — the mayor said planned work includes building upgrades at the community center, Gardner City Hall, Landry Auditorium at Gardner High School, new locker rooms, a new Gardner Middle School entrance and a new middle-school roof.

Details and constraints: The mayor explained that state law and bond-counsel rules prescribe maximum terms for different kinds of borrowing (for example, paving vs. equipment) and that the city must document any changes so that funds are used for qualifying, long-lived projects. He said the option of applying the surplus to reduce principal immediately was less attractive because it effectively shortens the loan only marginally when interest and amortization are considered.

The mayor said the work is expected to proceed as the weather improves and will benefit the city over the 30-year borrowing horizon.

Ending: The mayor pledged to share specific project lists and timetables in future updates as the city finalizes plans and repairs.