Proposed $115 project will be funded through a combination of funding sources:

• Use of capital reserve funds (savings)

  • Every $1 million the district spends from its capital reserve, allows it to spend approximately $4 million with no local tax impact

  • Currently $13.4 million, projected growth to $20 million over next three years

• Borrowing

  • Long-term (Bond Anticipation Notes or BANS) and short-term Bonds

• Debt Service Fund

  • $2 million

• Retirement and replacement of existing debt

  • Budgeted funds will be transferred to new debt, limits the budget and tax impact and leaves room for new issuance

• NYS Building Aid

  • Estimated: 90 percent "aid-able," with a 75 percent aid ratio for capital expenses

In the first year, the budget increase is estimated at $197,000, with gradually increasing budgetary appropriations required as the project evolves and is phased in fully.

The average annual cost for the duration of the project is estimated at $657,800 for 20 years. In the existing 2022-2023 budget, this level of expense represents approximately 0.33 percent or one-third of one percent of the total budget or 0.51 percent or one-half of one percent of the tax levy. The district estimates the fully phased-in program will cost an additional $38.00 annually for a property with a market value of approximately $350,000.

These cost increases would be offset by improved reliability, maximized energy savings and lower maintenance costs.