PETERBOROUGH — The School Board got its first look at a $5.4 million bond proposal Tuesday, one that includes most of the items in last year’s rejected $5.5 million bond.

Craig Hicks, chairman of the School Board, said Wednesday the School Board has yet to evaluate the bond proposal, which could be significantly changed.

He said the key to the discussion is a $5 million threshold for building expenses, which if spent within five years would qualify the district for 55 percent state aid for the bond projects.

“My goal would be to have a less than $4 million bond and still hit the $5 million threshold,” said Hicks.

The district has already spent $546,000 on aid-eligible building projects, said Hicks, nearly $300,000 of which would come back to the district if the $5 million threshold were reached. Because the entire bond would be eligible for building aid reimbursement, the district could receive $2 million to $3 million in aid.

“We’re crazy to not go after building aid,” said Hicks.

Hicks said the approaching retirement of two more bonds in the 2012-13 year will further improve the district’s cash flow, freeing up nearly $2 million that could be used to pay off the principal of an approved bond. This could save the district as much as a $1 million in interest on the bond while the district continues to receive building aid.

“Then we, the district and the taxpayer, would be way ahead of the game,” said Hicks. “It will make things a lot smoother for taxpayers.”

State officials, however, are considering significant changes to the building aid program. According to published reports, a joint legislative committee has proposed a freeze in building aid, but no action has yet been taken.

District Business Administrator Marian Alese said state officials have informed her that any projects would be fully funded as long as they are in the pipeline before a legislative decision. At this point, the district has notified Department of Education officials that the bond is under review and an application for building aid could be forthcoming, but the project will not be “in the pipeline” until approved at the March elections.

In the bond’s current form, ConVal Facilities Director Tim Grossi said, its estimated tax impact would be less than $30 on a $100,000 home. The impact may be close to zero, he said, because a 10-year, $5.5 million bond for the elementary schools will be paid off this year. According to district documents, that will free up close to $600,000 per year for payments on the proposed bond.

“The impact is pretty negligible, even if it’s up at the higher end,” said Alese.

Audience member Colleen Stone cautioned the board against using the phrase “It’s only $30” when referring to how much tax impact the bond would have on a typical voter.

“Thirty dollars to some families is a huge amount of money,” said Stone. “I’m not saying it shouldn’t be spent, but you’ve got to stop saying that.”

Vice-chairman Bart Goodeve said he appreciated Grossi’s presentation, but that the bond is essentially the same as the one presented last year.

Voters rejected that bond 1,893 to 1,490.

Last year’s bond proposal included $150,000 for improvements to technology infrastructure at ConVal High School. Those improvements were funded by a health insurance surplus in the last fiscal year and were completed over the summer.

In the current bond proposal, the Lucy Hurlin Theater would receive $408,750, approximately $40,000 less than last year’s bond as amended at deliberative session. The original $6.5 million version of last year’s bond allotted $670,000 for the theater.

The proposed bond also reflects significant alterations to the scope of an alternative education building, included in last year’s bond as a $1.2 million expense. Intended to house special education offices and facilities, the building is designed to be an in-house special needs program, which could save money spent on costly out-of-district placements. After alterations to the building materials and design of the 6,360-square-foot building, the new bond includes an estimated cost of $763,000.

Temple representative Gail Cromwell proposed an alternative to the alternative education building. She suggested the district move Antrim Elementary School students into Great Brook School, move the School Administrative Unit offices to Antrim Elementary School and put the alternative education program in the current School Administrative Unit offices.

Francestown representative Stewart Brock said the suggestion would, at best, be a short-term fix.

“That may come back and bite us in a couple years when things swell back in the opposite direction,” said Brock. “It’s buying time, but creating different problems in the future.”

The new proposed bond has increased the scope of improvements at the gymnasium end of the high school from $3.7 million in last year’s amended bond to $4.28 million. The majority of the costs reflect non-compliance with the Americans With Disabilities Act and Title IX, laws mandating equal facilities and opportunities for girls and women, said Grossi. The New England Association of Schools and Colleges cited the compliance issues in a 2005 report.

“School officials are reminded that all valid recommendations in the evaluation report should have been completed or be in the final stages of implementation when the school submits its Five Year Progress Report,” reads the NEASC report. The ConVal High School five-year report will be due on March 1, 2010, according to the report, and failure to address the issues could result in probationary status for the school.

The new bond addresses additional ADA-compliance issues across the school that were not included in the first bond, said Grossi. Because the locker rooms, bathrooms, air-handling units, wiring and plumbing in that part of the building are as old as the school, Grossi said the bond included improvements to those areas.

“When other teams come in, it’s a little embarrassing,” said Grossi. “In 40 years, other than cleaning, it’s received very little attention.”

Cromwell asked what the minimum cost would be for the necessary handicap accessibility repairs at the high school. Hicks said a tour of the locker rooms might be in order for any School Board representatives who have not seen their condition, and might drive home the fact that ADA fixes alone will not solve the problem.

“I have been in there, and I would say that of all the locker rooms I’ve been in in my life, it is the worst,” said Cromwell. “It is the locker room from hell.”

To install an elevator, renovate the bathrooms and locker rooms, upgrade fire alarm equipment to include strobes for the deaf and install the needed signs would cost about $2 million, said Grossi. He did not, however, recommend performing the bare minimum.

“I hate to say the words, ‘while we’re at it,’” said Grossi, “But to spend $2 million and still have the core be 40 years old, quite frankly, seemed like a waste of money.... Then you’re throwing a fancy paint job and nice rims on a really beat-up car.”

The board will meet on Dec. 1 to further discuss the bond and building aid options with a representative from the state Department of Education.