Capital improvement project preliminary plans
approved by NYSED
December 28, 2016 -
The preliminary plans for the proposed capital improvement
project were submitted to and approved by the New York State Department
of Education (NYSED).
NYSED calculated the project’s building aid units and
the information was forwarded to the district’s fiscal advisors who
determined that the state aid estimate will allow the Board of Education
to meet its goal: to put forth a capital improvement project to the
community without impacting the tax levy.
The proposed $30,483,850 project will be funded by:
$9,054,000 from the district’s capital reserve
$1,343,184 allocated by New York State through
the Smart School Bond Act – the district anticipates approval of
this funding in June 2017
$20,086,666 from the local tax levy*
* The local tax levy will be offset by state aid. New
debt service obligations will be issued. The proposed project is timed
so that debt service from past capital projects will soon be retired.
Now that state aid has been calculated, the estimated local share to be
paid by taxes for the new capital improvement project will be
approximately $171,058 less during most years than the local share that
is currently being paid on the retiring debt – thus resulting in no
impact to the tax levy for debt service.
State aid will not cover the entire local share in
fiscal years ending June 30, 2017-2019, and the district may use money
from its debt service reserve as well as building aid and appropriated
fund balance to ensure that the project does not affect the tax levy
during those years.
The project will be paid with bond anticipation notes
(BANs) for the first three years beginning in 2018, and will then be
bonded for 15 years from 2021 through 2036.