Potential Impact on Tax Bill

The potential tax rate impact assuming the maximum amount of bonds on each referendum question is issued is shown in the following table: 

“D.S.” stands for debt service

The “Gross D.S.” numbers reflect the real estate tax rate equivalent of the full debt service (annual principal and interest) if bonds totaling the maximum amount in each question were to be issued.  The gross numbers do not account for the declining nature of existing debt service, which amounts are already known based on existing amortization schedules for bonds that have been sold previously.  The “Net D.S.” numbers factor in the known decline in existing debt service over time.  

For example, existing Schools debt service will decrease by approximately $17.0 million over the next eight years.  At its highest point, the estimated debt service on all $206.8 million included in the referendum for Schools equates to 11 pennies on the real estate tax rate, this is the gross debt service figure.  However, if we were to factor in the $17.0 million decline in existing debt service, the net impact to Schools debt service would equate to 3 pennies on the real estate tax rate (the net debt service figure).