Board of Education hears financial impact of capital project

The proposed capital project on the May 15 school ballot would raise taxes by a net of $14 (+.44 percent) for the typical homeowner with a $160,000 assessment once the 1999 capital project is repaid, a fiscal adviser told the Board of Education on Monday night.

“We always maintain a level of conservatism in these figures,” Ben Maslona from Fiscal Advisors and Marketing of Syracuse told board members.

The May 15 capital project would upgrade some grass fields, replace the grass field at the track with a synthetic field, upgrade both the middle school and high school auditoriums and partial replacement of the high school roof.

Board members will hear from the architects at the March 19 meeting regarding more specifics of the estimated $14 million project.

The community vote on the capital project, budget, bus purchase proposal and Board of Education members is scheduled for 7 a.m. (note the new starting time) to 9 p.m. on Tuesday, May 15 in the B-wing gymnasium at the high school, Sacandaga Road.

Maslona noted several items about the capital project:

  • State building aid ratio is 74.3 percent. That means that 74.3 percent of the cost of the projects will be returned to Scotia-Glenville through higher state building aid, which he noted is typically not altered in state budgets.
  • He estimated that 99 percent of the project will be eligible for building aid.
  • Since it is reconstruction, the aid would be repaid over a 15 year period. The district’s net cost each year from 2021-2035 would be an average of $375,773. That amount would create a tax increase of $0.269 per $1,000 assessed value (+1.31 percent) or $43.04 for a home assessed at $160,000.

However, Maslona also noted that the district’s capital project from 1999 (which added the sixth grade wing at the MS as well as elementary additions) will be repaid before the payments on this project begin, wiping about $250,000 per year from the budget.

That would mean a NET debt increase of $125,000 per year for the proposed capital project or 9 cents per $1,000 assessed value (+.44 percent), or $14.40 per year for the home assessed at $160,000.

  • The district would receive $814,096 in additional state aid from 2021-2035 during repayment of the loans to pay for the project.