ESTIMATED TAX IMPACT OF AN APPROVED BOND VOTE
The District will issue a series of 15-year bonds over the course of seven years to cover the costs of the proposed bond projects. It is estimated all work proposed in the bond plan will be completed within a seven year period. If the bond is approved, the total costs of the bond plan will be offset by state aid reimbursement as described below.
Each year over the first seven years, there will be a tax increase related to that year’s bond issue. After the first seven years, the annual bond-related tax impact will remain constant for eight years. Starting in year 16, the tax impact will gradually decrease until all bonds are retired in year 21. The charts below illustrate the tax impact on three home values representative of the different homes in the South Huntington community. The charts are based on the estimated current interest rate of 2.5%, incorporating the cost-savings to be realized from state aid reimbursement tax offsets.
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* Proposition 2 can only be approved if Proposition 1 is approved.
IMPORTANT NOTE ABOUT STATE AID REIMBURSEMENT FOR CAPITAL PROJECTS
The tax impact charts above represent the significant cost savings that will be realized by the District from state aid reimbursement. Based on information the District has received from its architects and NY state aid specialists, 92 percent of all projects proposed in Proposition 1 and Proposition 2 will be eligible for the District’s 54 percent state aid reimbursement rate.
What does this mean for the South Huntington community?
With 92 percent of all projects being eligible for state aid reimbursement at a 54 percent reimbursement rate, the District will be reimbursed $57,032,887 on the total cost of the bond plan. These cost-savings significantly lower the tax impact on South Huntington taxpayers.