How will the Town pay for the new school and how much will it cost the tax payers?

There are numerous financing models the Town could consider, but the two presented at the Financial Summit frame the alternatives in the clearest terms. The total cost of the 20-year EP financing plan was $46.5 million ($32 million principal plus $14.2 million interest), with higher annual payments for a shorter period. The total cost of the 30-year LD plan was $60.5 million ($32 million principal plus $28.5 million interest), with lower annual payments for a longer period.

The summary table below displays a 25-year LD option, i.e. a "middle" option, alongside the two options presented at the Financial Summit, for discussion purposes. These three options represent the spectrum very well. More detail on each option is provided in the attachments.

Facts & Figures30-year level debt25-year level debt20-year equal principal
Total Project Cost$60.5 million$53.8 million$46.2 million
Total Interest Cost$28.5 million$21.8 million$14.2 million
Cost Avoid (versus 30 years)$0($6.7 million)($14.3 million)
Peak Year (fiscal year 2023)$7.54 million$7.68 million$8.32 million
Average Tax Bill Increase$157/year, 30 years$167/year, 25 years$179/year, 20 years
Required SSF to stay at 6%$8.3 million (fiscal year 2020 to 2026)$9.2 million (fiscal year 2020 to 2026)$13 million (fiscal year 2020 to 2026)
Budget ImpactService SolvencyExclusion / Service SolvencyDebt Exclusion


You can view the 2018 Financial Summit (PDF).

Show All Answers

1. What is a Construction Manager, who is ours, and what do they do?
2. How much does the Smith School Project cost and how much has been spent to date?
3. Why does the Smith Elementary School need to be replaced?
4. Will enrollment at the Smith School increase?
5. Will the Town be completing a redistricting process to help address growing enrollment?
6. What is the Smith School Project at a glance?
7. What site was selected for the new Smith School, and why?
8. What does the project timeline look like?
9. How much will the project cost?
10. How will the Town pay for the new school and how much will it cost the tax payers?
11. Who is the architect for the Smith School project?
12. What is an Owner’s Project Manager, who is ours, and what do they do?
13. What is the MSBA?
14. How can I get involved and stay informed about the Smith School Project?