Operational Savings

Closing Cedar Secondary saves $470,000 per year (minus busing costs)
Source: Cedar Responses to Trustees Questions | Jan 14, 2015

Busing Costs = $163,000 (All displaced Cedar students to Ladysmith)

$256,000 per year operational cost minus $93,000 (original cost to bus to Cedar Secondary)
PLUS a one-time capital cost of $980,000
Source: Cedar Responses to Trustees Questions | Jan 14, 2015

NET Savings of closing Cedar = $470k - $163k

$307,000 per year

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Capital Expense
Re-tooling Cedar into an Elementary School:
Original Estimate = $1.5 million
As promised (open concept 21st-Century) = $5-8 million (est)
Scaled-back (current estimate, including field work) = $2.5 million
(a) Approx. $2 of $2.5 million is taken from maintenance of other schools (AFG funding)
(b) Add $980,000 for 1-time purchase of new buses

Total Capital Outlay = $2.5 million + $0.98 million

$3.48 million
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A 13-Year Pay-Out
Spending $3.48 million to save $307k per year. It will
take a minimum** of 13 years to see any net savings.
Thousands

10

11

12

13

500

-500

-1,000

-1,500

-2,000

** Pay-out time will likely

be longer, as gas,
maintenance & wages
increase and if number
of students increases. Or
if project costs go up.

-2,500

Does not make

financial sense
.

-3,000

-3,500

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