ESTIMATED TAX IMPACTS
Below are tax impact projection sheets for each town. We hope the level of detail is helpful. There are several assumptions being used in these projections:
Rates
- Using FY24 tax rates and average assessed home values
- 3.25% rate for short term/interest only payments
- 3.75% rate for bonds
Timelines
- Interest only borrowing for FY26, FY27, FY28
- Bonds start in FY29. Please note: This is not a required timeline; Initial bonding could be delayed until FY30
- Final bonding of a smaller amount could roll on for FY31 depending on MSBA close out timelines
Project Financing
- Financing approximately $162m after applying available stabilization funds and equipment grants to help reduce the bottom line
Enrollment Projections
- We used annual enrollment projections for FY26-FY29, and then for simplicity used an average projection for “FY30+”. These FY30+ projections are on the respective charts
Borrowing Models
- We show two borrowing/payback models: level debt payments and level principal payments
- No decision is made on the borrowing until the district is ready to bond, but we hope it helps to show the comparison. Level debt is less costly in the short term but has more interest over the life of the borrowing. Level principal is more costly in the short term but reduces payments and interest over the life of the borrowing. The district would consult with towns prior to any bonding decisions for FY29+
- The charts also show a projected tax rate increase in FY29 for both borrowing models in the event readers wanted to calculate their projected share based on an individual home’s assessed value, versus the average assessed home cited on the chart
If you have any questions please contact Tom Hickey, Superintendent, at thickey@ssvotech.org or Jim Coughlin, District Treasurer, at jcoughlin@ssvotech.org.