If the town is allowed to go ahead with the Elementary School Construction and the Junior High renovation, they will need $33,000,000. To get that money, assuming they don’t bother to apply for state funding (?), they will have to issue a bond….borrow money with interest. That bond is paid off over different possible term periods, 25 and 10 year or 30 and 10 year as shown on the chart. The borrowing rates also can differ.
The chart assumes the debt payment will begin in Fiscal Year 2020. Depending on the eventual scenario, property tax, in that year, would increase between 5% to almost 7%. Now, the important thing to realize is that this chart does not include possible increases in normal school budget or the town Municipal budget which in itself has averaged 4% per year since 2010. So now we are possibly up to 9% to 11% in FYR 2020.
Another thing to consider is that we are currently going through a re-evaluation of property values, the impact of which is unknown. For some, outside of and in addition to the above, your taxes will go up; for some your taxes will go down; for some your taxes will remain nearly the same.
And of course there are other unknowns. We have a Fire Station in dire need of replacement. Our roads are in need of repair. These and other issues will certainly come up over the coming years and will likely add to the tax burden!
Note:The above chart is part of a presentation prepared by the town finance department and can be found in the Finance area of the town web site.