First proposition carries no tax rate impact; Proposition #2 impact is for two years only
The Feb. 9 proposal is timed with when the district is paying off some debt for previous projects to minimize the impact on tax rates. Voters will consider two propositions that represent a total of $79.02 million in investment in facility improvements across the district.
Sources of Project Funding
- State aid: (74% of approved project costs)
- NCSD Capital Reserve Fund
- District borrowing (debt service payments)
Here is information about each proposition, including the tax rate impact.
|Proposition||Amount||Work Proposed||Tax Rate Impact|
|Proposition #1||$62,238,000||Significant renovations and a classroom additions at the middle school level, critical health and safety projects across the district, and outdoor athletic improvements.||No Tax Rate Impact
|Proposition #2||$16,780,000||Additional middle level renovations and health and safety projects, and fully implement the outdoor athletic field portion of the Niskayuna High School Athletic Master Plan||$28 per $100,000 of assessed value for two years only
Equates to $84 for a house assessed at $300,000 – $7 per month
After 2023 and 2024 this goes away
How is the District Able to Do $79 Million of Work at this Tax Impact?
The Niskayuna Board of Education worked very closely with its financial advisors, architects, and construction managers to develop a capital project to meet the needs of students and help maintain facilities in a fiscally responsible manner.
The goal throughout the planning was to develop a proposal that does not increase taxes. Proposition #1 contains no added tax rate impact and, if both propositions are approved, it would result in a total of $79.018 million in work with a tax rate impact for only two years.
How is this possible? The answer is based on three pieces of information:
- The district has a reimbursement rate of 73.8% from the State of New York for projects that are aidable. That means that for every $1.00 we spend on projects that the state deems aidable (most of this proposal), nearly 74 cents comes back to the district in state aid.
- The district has $7,727,140 available in a “capital reserve” fund. This fund, which the voters approved, allows the district to set aside money to help fund the improvements,
- The size and timing of the project is based on when the district is paying off debt for previous improvements. As we pay off old debt, the debt for the proposed work of a similar value would come online with little impact to the tax rate.
- These three factors put the district in a position to undertake more than $79 million in facilities improvements with only two years of added tax rate impact.