Bond is sold at 3.844%; taxes to rise $459 a year

Items to be paid for with the latest bond issue (click to enlarge).

(Editor’s note: this article was corrected on Dec. 17, 2025.)

Now that the bond has been sold and repayment costs are known, the community center will add about $460 a year to homeowners’ tax bills over the next 30 years.

The $24.07 million bond will help pay other expenses as well: the community center ($15.77 million of the $26.35 million construction cost) as well as design and construction on both phases of the Lincoln Road water main project ($8.47 million) and various other Water Department items totaling $741,234.

The low bid on the $24.07 million bond came in at an interest rate of 3.844%, significantly lower than the 4.25% that the town used in forecasting expenses.

Those on town water will also be paying higher water bills, since the Water Department items will be repaid through water fees rather than property taxes, as with the community center.

Lincoln’s outstanding debt principal (click to enlarge). The bond for the Town Hall renovation was originally issued in 2011 and refinanced in 2021. The original bond amount was $5.8 million at an interest rate of 3.84%. 

While the community center borrowing will add approximately $459 a year to the median property tax bill, “we accounted for a portion of that to pay for the first interest payment in spring 2026, so the net impact for the median tax bill in the fall of 2026 is approximately $289,” said Finance Director Colleen Wilkins.

The town currently has $116 million in outstanding bond debt principal (see table) plus interest. The town pays debt service each year and a portion of that pays down principal. Outstanding debt, including this most recent bond issue, is roughly $104 million, Wilkins said.