Funding

  • The Massachusetts School Building Authority (MSBA) Board of Directors approved plans for a renovation project for the combined Middle and High School of the Adams Cheshire Regional School District.
  • The MSBA has approved a total project budget of $40,561,257 with a reimbursement rate of 78% of eligible costs
MSBA $28,300,000
Adams $8,600,000
Cheshire $3,700,000
Total $40,600,00
*amounts have been rounded
  • Both towns will hold Town Meetings to formally accept the proposal being put forth by the School Committee.  Additionally, both towns will hold special elections on October 21st and 23rd to authorize debt exclusion.
  • 

MSBA Reimbursement Rate

Base Rate 69.82%
Incentive Points:
-Major Reconstruction 4.56%
-LEED Certification 2.00%
-Maintenance 0.99%
-Construction Manager at Risk 1.00%
Total Reimbursement Rate 78.37%

Debt Effect on Tax Rate:

Impact per $1000

Cheshire Adams
FY2014 Year 1 $0.27 $0.39
FY2015 Year 2 $1.03 $1.47
FY2023 Year 10 $0.85 $1.21
FY2033 Year 20 $0.63 $0.89
FY2039 Final Year $0.50 $0.71

*Source:  Financial Plan prepared by First Southwest Company.

Debt Structure

  • Financing Plan prepared by Districts independent financial advisors.
  • District will issue (25) year municipal bonds.
  • Estimated interest rate is 4.5%.
  • Bonds will be issued in FY2014.
  • Apportionment between towns based on October 1, 2009 HVHS student enrollment.
  • Interest only payment in FY2014.
  • Principal pay down begins in FY2015.
  • Bonds structured  with level principal payments.
  • Declining debt service each year.
  • Impact on tax rates will decrease over life of debt.
  • Overall savings of $1.8 million over level debt structure.

*Based on FY2010 Assessments

Cheshire Adams
Assessed Value Single Family $209,708 $141,746
Average Single Family Tax Bill $1,957 $2,268
Tax Rate Before School Project 9.33 16.00
Tax Rate Year 2 of Debt (Max) 10.36 17.47
Projected Single Family Tax Bill $2,173 $2,476
Effect of School Project on Bill $216 $208

Source:  Municipal Data Bank – Dept of Revenue