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Construction Financing Reimburses Early Project Costs (By MSAD #75 Business Manager Mark Conrad)

posted Jul 24, 2017, 8:44 AM by Ryan Palmer

Over the last two fiscal years the District’s operating budget has included a total of $550,000 to provide initial funding to plan for a new high school, establish a project budget, and bring it forward to the voters at referendum.  With the approval of the project by the voters at the March 7, 2017 referendum the District can now move in obtaining the financing necessary to pay for the costs of construction.

As a first step in this process the District has now received a “bond anticipation note” which included funds to reimburse the District for the initial $550,000 budgeted through the recent annual operating budgets.  Those funds will now be available over time to fund District programs and services and/or minimize future increases in tax assessments to our four towns.

In the spring of 2019 the District will be able to issue a twenty-year bond for the full cost of the project.  The annual cost of debt service (principal and interest payments) on the bond will be supported with both state and local funds, but will not have an impact on the District’s operating budget for another two years.