The Gloucester School Committee and City Council held a joint meeting on September 15. During this meeting the City Chief Financial Officer, John Dunn, reported on the latest updated cost of the Debt Exclusion for the project if the project is approved on November 3rd.
The total MSBA approved cost of the project is $66.7 million, with an MSBA Estimated Maximum Total Facilities Grant of $25.5 million, which could increase to $26.972 million if certain contingency funds are expended on the project. Mr. Dunn estimates that based on a debt exclusion of $42.0 million, future tax rates would increase by about 20 cents per $1,000 (or $20 per $100,000) of property value. This amount could be less in some years based on how the city issues and retires bonds related to the project. To understand how this would impact property owners:
The estimate of the cost to homeowners has been reduced from previous estimates based on the borrowing market which has seen a decline in loan interest rates. Additionally, ancillary costs have been removed from the project budget and will be funded from a loan order which was approved by the City Council after a public hearing on 9/22/20 in the amount of $4.2 million. This includes:
The City Council will be discussing and voting on the transfer of the land behind Veterans' School at their September 29 meeting. Comments are closed.
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AuthorsMembers of the East Gloucester Building Committee post project updates here periodically. Archives
January 2021
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