What is a bond?

A bond is a financing option used for school districts to fund large capital projects.  School districts are permitted to issue debt in the form of long term Bonds or short term Notes which are bought by investors with interest rates based on market conditions. Financing a capital project through the issuance of a bond helps to align the cost of the project with available building aid from New York State which is generally paid out over an assumed period of time.
 

What are the propositions on the ballot?

Proposition 1 includes infrastructure repairs to existing facilities at all of our schools, including roofs, paving, networking, electrical, HVAC equipment and various other items.  This proposition also includes building updates such as air conditioning in our gyms and cafeterias, electronic locks (K-8), exterior bathroom replacement at Greeley, auditorium lighting and curtain upgrades at Greeley, a storage building for athletic equipment, and a field for modified baseball at Seven Bridges.

Proposition 2 includes enclosing and centralizing the main entrance at Horace Greeley High School in order to improve building security.
BACK TO TABLE OF CONTENTS

What are the facilities needs of the school district?

Our facilities need these upgrades to preserve our District buildings and to provide our students with long-term, safe, secure and fully functional schools. The Building Condition Survey (BCS) has identified the immediate, short-term and long-term needs of our existing school facilities. The BCS, which is required by New York State every 5 years, was used to prioritize the items included in the bond proposition.
BACK TO TABLE OF CONTENTS

Why can’t we fund these facilities repairs through the regular school district budget?

Over the last several years, the District has delayed major renovations in order to support programmatic needs.   While this has brought amazing educational opportunities for our students and community, our existing building infrastructure has continued to age, placing significant pressure on our Operations & Maintenance department's operating budget.

Our O&M staff do an amazing job keeping our buildings safe and clean for our students, staff and community, but the repairs and upgrades that our schools need are currently more than our annual budget can support in any one year. Our buildings need this attention now, and a bond allows us to reduce the impact on taxpayers by spreading it out over a longer period of time.
BACK TO TABLE OF CONTENTS

What are all of the potential options for funding building improvements?

There are generally three options for funding building improvements in public schools:

1. Annual Operating & Maintenance Budget - Typically smaller repairs, replacement-in-kind and annual upkeep of our buildings.
2. Capital Appropriations Projects - These generally include larger projects requiring building permit approval, architectural or engineered drawings.
3. Bond Funded Projects - Typically much larger in size and financed to coincide with the useful life of the systems being built or replaced.  

All of these options are funded through our annual school budget.  However, options 2 & 3 generate Building Aid from New York State which is typically paid over 15 or 20 years after completion, and they also are exempt from the Tax Cap calculation (more on the Tax Cap in a moment).  A bond provides the additional benefits of aligning the cost (construction and financing) with building aid to smooth the impact on taxpayers over a longer period of time and to accomplish more work through economies of scale.  
BACK TO TABLE OF CONTENTS

What is the bond timeline?

If the bond is approved, the preliminary timeline assumes construction will begin in the summer of 2024. The funding would begin with two years of short-term financing (Bond Anticipation Notes or BANs) and then a final Bond would be issued with repayment over 15 years to coincide with New York State Building Aid.
BACK TO TABLE OF CONTENTS

How will it impact taxes?

If both propositions 1 and 2 pass, the estimated average marginal tax rate increase will be $0.37 per $1,000 of assessed value over the first 6 years before declining.  For a home with a market value of $1,250,000 and a basic STAR exemption this equates to approximately $451 per year.  

If only proposition 1 passes, it would result in an estimated average marginal tax rate increase over the first 6 years of $0.19 per $1,000 of assessed value.  For a home with a market value of $1,250,000 this equates to approximately $232 per year with a basic STAR exemption.

If only proposition 2 passes, there would be no marginal tax impact due to the size of that project on its own in relation to the scheduled decline in existing debt.  
BACK TO TABLE OF CONTENTS

What happens if we do not pass the bond?        

The Building Condition Survey (BCS) highlighted various facilities improvements that are necessary across all school buildings. A bond is the most effective option to address the most pressing needs of our buildings today, and in the near future.  If bond proposition 1 does not pass, the District will need to address building needs in smaller projects, over a longer period of time, with funding available through the annual budget.  During this time, facilities needs will continue to grow more urgent as our facilities continue to age.  
BACK TO TABLE OF CONTENTS

How will the Bond projects improve school safety?

Proposition 1 includes the installation of electronic locks at all buildings that do not currently have them.  These locks automatically engage based on predetermined schedules and when a lockdown is initiated.  

Proposition 2 will implement a single point of entry at Horace Greeley for all students and visitors by enclosing the open courtyard, redesigning the main entrance and connecting the gym building to the other academic buildings with an enclosed walkway.  This project is based on recommendations received from safety consultants who expressed concern with the accessibility of our buildings to the public.  
BACK TO TABLE OF CONTENTS

How will it improve our facilities?

The vast majority of the work identified in Proposition 1 will address the poor condition of our aging facilities through repair and replacement of building systems, reduce costly maintenance and extend the useful life of our buildings, systems and outdoor facilities. Proposition 1 will also air condition gyms and cafeterias to provide larger spaces for heat alleviation plans during high temperature days, install electronic security locks at all doors in our K-8 buildings to match those at Horace Greeley, provide a modified baseball field, outdoor bathrooms and necessary storage for the Athletics program, and replace outdated theater lighting and stage rigging equipment in the Horace Greeley Auditorium.
BACK TO TABLE OF CONTENTS

How will passing the bond improve student experiences?

In addition to addressing many infrastructure needs that are “behind the scenes,” which impact the health and safety of our students and staff on a daily basis, Proposition 1 includes a few programmatic improvements that will directly impact the student experience, including theatrical lighting and curtains for the Horace Greeley Auditorium, a new baseball field for middle school students, and the addition of air conditioning in all gyms and cafeterias to support our heat alleviation plan.  Additionally, the network and fiber optics will be updated in all buildings, resulting in faster and more reliable network access to support student learning.
BACK TO TABLE OF CONTENTS