Back school project, North Stonington can afford it
Concerns about North Stonington's capacity to take on the debt of $21 million for the school project (the cost after state reimbursement) are unfounded given the town’s healthy financial profile.
The project from the start had anticipated a tax rate increase of 3 mills to repay the required indebtedness. The good news that has developed since then is the ability to finance the project at a lower interest rate set at 2.75 percent and the opportunity to optimize the terms of indebtedness.
These favorable circumstances allow the amortization payments to be met by a 2-mill increase in tax rate. In that a 1-mill increase was already set for the adopted 2017-18 fiscal year, an additional increase of only 1 mill is necessary to accommodate this capital project.
The much needed school modernization project has been brought forth at a time when North Stonington is well prepared and with costs that have been reduced due to reimbursements and favorable financing. The timing relative to these critical factors could not have been better.
Moreover, this capital project demonstrates a commitment to moving the town forward meeting goals as defined in the town's Plan of Conservation and Development.
Chairman Conservation Commission
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