These projects will increase the tax bill, starting at $30 in FY2021, and growing to $418 in FY2024. The annual cost will then decline as the debt is paid off in the following years.
This is based on a comprehensive financing plan for the Town's capital needs, including existing projects and the three new buildings covered by the upcoming referendum. Short-term tax mitigation will be used to smooth out the transition in the tax rate.
The chart below provides a more detailed breakdown of a tax bill into four parts:
Base tax (gray) is the core of everyone's tax bill. It typically increases by 2.5% each year.
Old debt (blue) is the annual cost of existing projects, such as Estabrook Elementary and the two Middle School additions. The old debt shown here will decrease every year after FY2020.
New debt (green) is the cost of the three new projects. New debt generally increases for two or three years while the related projects are being built, after which it begins to decrease as old debt.
Mitigation (dotted outlines) highlights a special reduction in taxes using the Town's Capital Stabilization Fund. This lowers the tax bill, reducing and even eliminating the impact of some debt over the next six years, and limiting the annual growth in the total tax bill to about 3%.
Data provided by Town Finance staff on Nov. 3, 2017.
These projects are the result of years of careful planning by town officials, both professional and volunteer. We understands this is a significant request for voters, but we can no longer delay these essential investments in our town infrastructure.