Seymour board unanimously authorizes school grant applications, design work for Bungie Elementary replacement

The Seymour Board of Selectpersons voted unanimously Thursday to approve three resolutions that clear the way for schematic design and a state reimbursement application for a proposed new Bungie Elementary School.

The resolutions, drafted by the town attorney and based on guidance from the Connecticut Department of Administrative Services, (1) authorize the Seymour Board of Education to apply for and accept or reject a grant for construction of a new Bungie Elementary School; (2) designate the Bungie building committee as the official building committee for the project; and (3) permit preparation of schematic drawings and outline specifications for the new school. The motions were moved by Fred and seconded by Al Bruno and passed 5-0.

Town staff and advisors told the board the project team is planning for several financial contingencies. Staff said the town may owe the state a one-time reverse-amortization repayment of $1,264,867 if a new school comes online in a specific window identified by the state. Officials also quantified the longer-term loss of solar-array-generated offsets and state ZREC payments at roughly $1.77 million over 10 years if the existing solar installation is removed and cannot be used by the new building.

Officials described options to address outstanding lease-purchase financing with Bank of America — including rolling about $6 million of current lease obligations into permanent school bonds — and noted bond counsel will advise further in writing. The town’s financial advisor presented worst-case and improved reimbursement scenarios, including a possible 10% “kicker” that would increase state reimbursement if the town demonstrates a new build is more economical than renovating. Under the worst-case reimbursement the town’s permanent financing need was presented at about $25.7 million (rough figures provided during the discussion); with an additional 10% reimbursement the town’s required share would be lower.

Board members pressed for written opinions from bond counsel and more historical data about the state’s 10% kicker; they also discussed the timing of S&P reviews and the potential first-year mill-rate spike if bonds are issued. Several selectpersons said they support placing a referendum before voters with full disclosure of costs, trade-offs and the plan the town will use to address the potential repayment to the state. Public commenters representing the Bungie Rebuild Alliance urged the board to move forward and educate voters on the project’s merits.

Next steps the board discussed include finalizing a dollar amount for the October referendum question, securing written counsel opinions on lease and tax-exempt issues, and developing a public outreach plan explaining both the financial impacts and the educational needs that the new school project aims to address. The board noted it may revisit formal resolutions at its next meeting if staff bring substantive new information.