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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 + $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 + $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 & Figures 30-year level debt 25-year level debt 20-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 (vs. 30 yrs.) $0 ($6.7 million) ($14.3 million)
Peak Year (FY23) $7.54 million $7.68 million $8.32 million
Average Tax Bill Incr. $157/year, 30 years $167/year, 25 years $179/year, 20 years
Req’d SSF to stay @ 6% $8.3 m (FY 20-26) $9.2m (FY20-26) $13.0 m (FY20-26)
Budget Impact Service Solvency Exclusion / Svc Solvency  Debt Exclusion


You can view the full financial summit presentation here.

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