By DEVON CORMIER
Staff Writer

The state Board of Education will be asked to resolve a dispute between the Manchester School District and SAU 15, which encompasses Hooksett, Auburn and Candia. The two disagree whether interest should be charged on money the city had to pay for capital improvements that began sooner than the sending towns expected.

Hooksett, Candia and Auburn send their high school students to the city high schools, having no high schools of their own.

SAU 15 Superintendent Armand LaSelva said Manchester is charging the towns what amounts to $70,000 in interest on money fronted to the towns from Manchester, but nowhere in the contract is interest mentioned.

“Manchester agreed to charge us the (capital improvement) money over nine years,” LaSelva said. “There is no mention in the contract that for the capital costs we would owe them interest.”

Hooksett, Auburn and Candia all signed a 20-year-contract with Manchester schools last year which includes expansion and renovation of city schools. The money Manchester fronted to the SAU has to be paid back in nine years.

The three towns agreed to pay close to $30 million in capital costs over nine years. However, construction on the schools started earlier than expected, in June of 2003, after the towns had already set their budgets. Manchester fronted the towns $315,000, and agreed to let each town pay the costs over nine years.

William Sanders, Chief Financial Officer for the Manchester School District said it was clear that the towns would owe interest.

“We believe that it was understood that that interest would be paid on the loan,” Sanders said.

What about state aid?

Lawyers for each side will also ask the state board to look at another contractual issue. Manchester will be receiving state aid for some of the renovations, and when the towns will see any reimbursement money is in contention.

Sanders said Manchester intends to give the towns the reimbursement when the city gets that money.

“The main point is that Manchester believes the state building aid would be credited as we collect aid from the state,” Sanders said. “The sending districts would be credited each year.”

LaSelva said Manchester didn’t apply for the aid until this year, even though the contract was signed in 2003. This made the sending towns wonder if and when they would be getting reimbursed.

“We were questioning if the school building aid from the state would be coming in,” LaSelva said. “Shouldn’t the communities paying tuition share in that reimbursement?”

The contract states that any contractual disagreements be addressed by the state Board of Education. The lawyers for each SAU will call the board and make their complaints.

“Hopefully, the state will come to a decision that can be win-win,” said Sanders. “We certainly don’t want to be in this dispute. It’s a difference in opinion and needs to be decided.”