Bond 2022: Fiscal Impact
Project Description and Timetable
The State of Rhode Island has a school construction program that provides aid to cities and towns for the support of replacing or improving school buildings; the Westerly Town Council has approved a total project cost of $50 million with a base state aid rate of 35%. The projects are anticipated to included renovations and improvements for Dunn’s Corner School and Springbrook School and a new building on State Street. The project timeline is anticipated to begin in December of 2022; Dunn’s Corner School and Springbrook are estimated to be completed by June of 2024 resulting in state aid for those projects in fiscal year 2024-2025. Remaining state aid is anticipated to be available after the completed of State Street School estimated to be
in fiscal year 2026-2027.
Once the projects are completed, there is the potential of additional aid if all criteria are met. The fiscal
information presented here does not include the additional aid which may improve the impact of the debt.
If this bond is approved, the bond period would begin with fiscal year 2023-2024 with an annual debt service payment of $2,125,000 resulting in a tax rate increase of .28 or tax increase of 2.93% attributable to the school bonds. This bond will be fully amortized in fiscal year 06/30/2048.
Fiscal Impact by House Values:
This analysis does not take into account changes to existing debt service. The current debt service declines by approximately $2,000,000 in Fiscal Year ending June 30, 2026. The impact of this decline is not factored into the tax changes represented here, however may result a decline in the tax rate impact from the proposed school bonds.