How much do you know about the bond to pay for the new middle school in Barrington?

Do you know how much it is for? 

(The bond is not to exceed $68.4 million, but officials have said that the building committee is working hard to reduce the cost of the project.)

Do you know how much the annual payments will be on the bond? 

(The town manager, Jim Cunha, said the yearly debt service payments will be about $3.1 million.)

Do you know what people will be voting on at the special financial town meeting on March 16?

(Residents will be asked whether they support exceeding the state-mandated 4 percent tax cap — a move some officials say is necessary in order to afford bond payments as well as proposed increases to the school and municipal operating budgets.)

There are a number of questions — and a fair amount of uncertainty — surrounding the middle school construction project and the financials involved with the work. 

Following is a list of some questions and answers regarding one of the largest construction projects in Barrington in recent memory:

What's going to happen at the special financial town meeting?

While the March 16 financial town meeting may look like a normal financial town meeting, it will focus on just one subject: the 4 percent tax cap. 

"There's no budget to vote on here," said Barrington Town Clerk Meredith DeSisto. "From my understanding, this (whether to exceed the tax cap) will be the only subject."

Ms. DeSisto said residents should expect to see members of the town council, school committee and committee on appropriations sitting on the stage inside the high school auditorium, as they would at a regular financial town meeting. She added that people will have an opportunity to ask questions or state their opinions about exceeding the tax cap.

Why have a special financial town meeting? Why not wait until the regular May FTM?

The town manager said there are two reasons officials decided to have a special FTM two months before the regular FTM. First, the interest rates for bonds is expected to climb and the difference of a couple months could mean a more costly project, said Mr. Cunha. 

The second reason is that officials want to start work as soon as possible, because construction costs are on the increase.

Can people move to amend the resolution to exceed the tax cap?

There is some debate about this one. Barrington Finance Director Kathy Raposa offered a clear "no" response to the question. "As far as I know, no, people can't make amendments," she said. "It's either a yes or no to exceed the 4 percent (tax cap)."

Solicitor Andrew Teitz, who sat for the January council meeting where this issue was discussed, said it was clear that no other items can be discussed at the March 16 meeting. However, he added, "Whether someone could move to amend it … I'd have to check on that," he said. 

Barrington Town Moderator Julia Califano said she too was not sure about amendments to the resolution.

"That's the question we've all been mulling in our minds," she said.

Ms. Califano said officials from the municipal government, school department, town council and school committee planned to meet on Tuesday, Feb. 28 to discuss the details of the meeting. 

"We all want to be on the same page," she said. 

How many people need to attend the meeting?

Ms. DeSisto said a quorum of 100 people is required for the meeting to be held. As for the vote, the resolution need only pass by a simple majority. It could, literally, come down to one single vote.

What happens if the resolution passes?

Ms. Raposa said the town would sell the bonds at market and "we'd have the money in April." She further explained that the money would actually go to the Rhode Island Health and Educational Building Corporation, which would hold it in an escrow account. 

"They hold the funds and as we make expenditures they reimburse us," she said.

Barrington Schools Finance Director Ron Tarro said that the debt service payments on the bond (principle and interest) would be reflected in people's tax bills beginning in the 2017-18 fiscal year.

What will the annual payments be?

The annual payments are expected to be about $3.1 million. 

Mr. Cunha said a $3.1 million increase for the town's budgets would, by itself, exceed 4 percent. In addition, the schools will likely be seeking a 3.25 percent increase to its operating budget, and the municipal government is expected to propose an increase of a bit more than 2 percent.

What is the term of the bond?

Ms. Raposa said the bond has a 25-year term. She added that the town, which has a AAA bond rating, is anticipating an interest rate of about 3 percent. Ms. Raposa said the town will be paying back a total of about $78 million for principle and interest.

If residents vote to exceed the tax cap, does that result in a "blank check?"

A green light to exceed the tax cap is not the same as a green light to spend without limits, said the town's finance director. According to Ms. Raposa, the state would use a formula to figure out how much the town would be allowed to exceed the cap. The formula is based on the town's current debt service figures, the projected debt service and some other factors. 

What happens if the resolution fails?

A "no" vote at the March 16 meeting would not spell the end to the middle school project, said officials. 

But it could impact the municipal and school department operating budgets. 

According to the town manager, officials have already whittled down their proposed operating budgets — the school budget will be released on March 7 and the municipal budget on March 14 — but further cuts would be needed to reduce the budgets enough to allow for the $3.1 million bond payment.

"Much of it (the budget increases) is contractual obligations," said Mr. Cunha. "The areas of the budget where there is flexibility become very small."

Will the bond have an impact on the May financial town meeting?

The quick answer is "maybe." 

Many officials are concerned that significant budget cuts could be filed by residents before and during the normal May financial town meeting, depending on how the vote goes at the March 16 special FTM.

"Absolutely that is a concern," added Mr. Cunha. 

The May FTM allows for people to file amendments — larger changes must be submitted to the town clerk's office days before the meeting and smaller changes can be made on the floor during the meeting. The changes for the municipal budget can be specific to line items within that budget, while amendments filed to the school budget would be to the overall budget figure.

Geoff Grove, the chairman of the committee on appropriations, said voters already approved the measure to build a new school for up to $68.4 million. "It would be inconsistent to say we want the school but we don't want to pay for it," he said.

Mr. Grove added that it is possible for residents to want to prioritize the school bond above the other spending increases.