Proposed ballot question asks Fall River voters to decide on debt exclusion for new Diman

FALL RIVER — Now that it's looking like the $294 million Diman Regional Vocational Technical High School project could cost Fall River taxpayers approximately $6.5 million annually for their major portion to pay back the construction bond, a proposed ballot question could give voters a choice on how those payments would be made.

The proposed ballot question is before the City Council who sent the matter this week for debate to the full-member Committee on Finance to decide whether to request the Secretary of State to place it on the November ballot.

The proposed question asks whether the city should pay the annual bond payments through a debt exclusion.

Mayor Paul Coogan said the proposed ballot question would not hamper the Diman project, nor change the city’s obligation to fund Fall River's portion of its students to attend the vocational school.

“This is just a mechanism to fund it,” Coogan said.

A debt exclusion allows a community to raise money above the allowed maximum of 2.5% in annual tax increases.

Voc school project: Coogan says cost to build a new Diman will soar to $6.5M a year. Here's what he wants to do.

Unlike a Proposition 2½ override, the additional costs to taxpayers would only be good for the life of the bond to build Diman, which is about 30 years.

It is estimated that Fall River, which has the highest student population by far at Diman, will be responsible for an estimated $111 million of the cost.

Paying off Diman through general fund could be detrimental to future budgets

Since proponents for building a new Diman floated the idea several years ago, the Coogan administration expressed support but wanted it to go to voters with the question of a debt exclusion, like the city did when it took the matter to voters on a new B.M.C. Durfee High School.

Coogan said Thursday his concerns are that with 80% of the general fund, which is where the money to pay the annual debt will come from at this point.

Paying off the Diman bonds will affect future budgets, Coogan said.

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Historically in Fall River, the big budget line items have come from public safety layoffs and from fire and police.

“In the municipal budget, 80% are salaries and benefits,” said Coogan, expressing concerns that in the future, that layoffs will be necessary to pay the approximately $6.5 million annual debt for Diman.

In February 2022, the City Council voted 6-3 to bypass voters and approve the Diman project and its funding.

Then Council President Pam Laliberte, Vice President Michelle Dionne and councilor Andrew Raposo expressed support for the school project but wanted it to go to the voters.

Those in favor of the council approval were then councilors Joseph Camara, Shawn Cadime, Linda Pereira, Brad Kilby, Leo Pelletier and Trott Lee.

During the introduction of the proposed ballot question during Tuesday’s council meeting, Dionne spoke briefly on the matter, indicating she may be changing her stance on the subject, but didn’t elaborate.

Dionne did not immediately respond to a request for comment.

The proposed question asks for voter approval

There is another portion of the proposed ballot question that would give an after-the-fact voter approval of the City Council’s 2022 decision, perhaps out of an abundance of caution.

Authors of the proposed ballot question, city Corporation Counsel Alan Rumsey and long-term contracted attorney Matthew Thomas, noted that there is a city ordinance regarding bonding.

Specifically, any bonding over $5 million must go to a vote by the people in Fall River.

However, that does not apply if the projects going to bond will receive 51% or more reimbursement from the government.

When Diman was first pitched, there were reimbursement numbers in the 70% range.

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Now, according to a letter sent to the administration to the City Council on the proposed question, the Diman building committee is lowering that figure to the 54% to 55% range.

The problem is that a final reimbursement number won’t be determined until after a post-construction audit is done, and after the city will already be paying its allocated share of the bond repayment.

If voters approve the post-City Council decision, the city is clear of violating its own ordinance should the reimbursement by the state fall below 51%.

Neither Rumsey nor Thomas had an answer at this time as to what happens if the question goes on the ballot and voters reject it and the reimbursement is below 51%.

The City Council has a deadline to decide. The Fall River Board of Elections has until Aug. 7 to request the Secretary of State place the question on the November ballot.

This article originally appeared on The Herald News: Proposed ballot question asks Fall River voters to decide on debt exclusion for new Diman