How will the Town's debt be affected by borrowing for the proposed new school?
- As of June 30, 2023, the Town’s debt was around $80 million. To fund the construction of the proposed new school, the plan is to add $160 million of new debt. This suggests that – in round numbers -- our debt will be going from the current $80 million to $240 million. However…
- This additional debt will likely be added in three separate debt issues (or “tranches”) between 2024 and 2026, with each separate issue being in the $50 - $60 million range. This means that the full impact of the new debt will not be felt until 2028. At the same time, we will also be issuing new debt for “routine capital” as well as paying off amounts of existing debt. So the exact amount of our total debt once the full impact of the new debt is added is not known. It will certainly be well in excess of $200 million.