Due to a math error by the Lincoln Squirrel, the tax increase and debt stabilization fund figures given in a November 12 article headlined “Borrowing plans for school project outlined” were incorrect. Borrowing $88.5 million at an interest rate of 4–5% will result in property tax increases of $2,415–$2,717 (not $560–$700 as originally stated).
However, this full increase will not appear in the first year of repayment, because the Finance Committee may divide the borrowing into two or more separate bond issues or tranches. Thus, the $2,415–$2,717 increase would not be in year one but might take two to four years before it reaches that level of increase. Then this higher level would remain in effect for the life of the 30-year bonds.
On December 1 (Special Town Meeting) and December 3 (election), residents will be asked to approve the total bond amount of $88.5 million, but it will be up to the Finance Committee at a later date as to how the debt will be financed in terms of tranching.
The debt stabilization fund currently stands at $5.5 million, not $5.2 million as originally stated. This means that if $4.4 million of that is used on the school project, there will be roughly $1.1 million left for future needs.
The original article has been updated to reflect these corrections.
My understanding is that borrowing will raise one’s real estate taxes by about 20%.