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Projected tax impact of proposed bond project

Filed in Archive by on November 3, 2016

graphOn Tuesday, November 29, Bethlehem Central School District residents will vote on a bond referendum totaling $32,165,551 that, if approved, would be used to pay for 111 separate projects across the district. Under the proposed Facilities Improvement Project, work on these projects — the majority of which will take place at the district’s seven schools — would get underway in the spring of 2019 and could be completed as early as November 2020.

Voting will take place on Tuesday, November 29 from 7 a.m. to 9 p.m. in the High School Upper Gym (Gym A).

New York State building aid would be applied to approximately 95% of the total cost of the project. The district is eligible for state aid reimbursement at a rate of approximately 68.6 percent. In addition to the state aid, the district estimates using $4.9 million from a capital reserve fund to reduce the total cost of the project. With state and use of the capital reserve, the estimated annual cost for a homeowner in the district would be $16 per $100,000 of assessed property value, or approximately $40 on a property valued at $250,000. The costs associated with the debt service would begin in 2021-22, after work on the proposed project is completed, and last approximately 15 years.

The estimates were provided by the district’s Chief Business and Financial Officer Judith Kehoe at several public meetings held during the bond development process.

“To maintain long-term budget stability, the district has set forth a plan to do small- to medium-size capital projects more often, rather than large capital projects — such as the $97 million project in 2003 — less frequently,” said Kehoe. “This helps to keep the district’s debt service payments relatively stable.

“Looking forward to the 2021-22 budget year, there is adequate capacity to add the estimated $2.2 million in debt repayment the proposed 2016 capital project is likely to generate,” she said. “In that year, approximately $4.2 million of existing debt related to the 2003 project will be retired, with projected debt service that year totaling approximately $8.4 million if the bond project is approved by voters on November 29.”

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Frequently Asked Questions – Fall 2016 Bond Project

View or download fact sheet [PDF]