WPCNR SCHOOL DAYS. By John F. Bailey. November 15, 2005: The Board of Education was presented with very early numbers on the cost of bonding for $50 Million to $65 Million in 2007,2008, 2009 to build a new Post Road School and to execute the most needed renovations to district buildings and fields (as recommended in the Building Condition Survey completed recently by KG & D architects).
The cost in taxes averages out to an additional $406 in school taxes per year beginning in 2008 for an owner of a $700,000 White Plains home.
The Board also learned that the Business Office recommends bonding for an additional $8 Million in tax certiorari refunds in June, 2006 to cover expected new certiorari settlements forthcoming according to information from the City of White Plains. The new $8 Million in bonding is addition to the $8 Million the school will bond for in December to cover certiorari refunds in the 2005-2006 school budget year.
Assistant Superintendent for Business Terrance Schruers provided work sheets to the Board and the media outlining roughly the cost of the anticipated $65 Million in bonding for the district. He was followed in his presentation by Russell Davis, the architect who outlined the procedure for the State Environmental Quality Review process required by the State Education Department. Davis presented a SEQR review process preliminary timetable, that, if followed would enable the School District to hold a referendum on a $50 Million or $65 Million bond issue in May, the time of the School Budget Vote.
Superintendent of Schools Timothy Connors cautioned the television audience that these were preliminary figures and that presently the Board was thinking that the district would consider bonding for only a portion of the work recommended, from $50 Million to $65 Million, which would include a new Post Road School, priority renovations to the 7 school district buildings, and field renovations. He assured the audience that prior to making any decisions on buildings that the parents and administrators of the schools would be consulted.
Rough Debt Schedule Issued.
Schruers debt schedule reported that the school district would increase its total debt from the $35 Million in debt it presently carries to $100 Million if it were to bond for the $65 Million figure.
The present school tax rate is $410.45 per $1,000 of assessed valuation. This means that a $700,000 single family home (currently assessed according to the city Assessor’s Office at $18,475) in White Plains pays $7,583 in school taxes (18.475 $410.45).
To put this into perspective for you, the median price of the 68 single family homes on the market today in White Plains is $799,000, according to White Plains realtors, Nelson-Vrooman Associates. The least expensive single family home on the market today in the city is $340,000, which would mean that homeowner would pay approximately $3,700 in school taxes
Certs Take First Bite.
According to Mr. Schreurs bonding schedule, the twin certiorari bonds would hit district taxpayers first at the end of 2006- 2007, increasing the tax rate $6.88 from the certioraris alone to $417.33 per $1,000. Add to this the average $8 tax rate increase to cover the projected school budget increases in addition to the certiorari bonds, and the tax rate would move to $425.33 per $1,000. This $425.33 would increase that $700,000 priced homeowner’s taxes due to the certiorari bonds bond $392 to $7,975, a $392 tax increase in 06-07..
The $65 Million in bonds will be bonded in increments of $21.5M, $22M, and 21.5M at 5% in June 2007, June 2008, and June 2009, with the first payments coming in 2007-2008
How would the $65 Million bonding affect our $700,000 homeowner’s taxes?
In 2008, the tax rate over 2005 for the cert bonds and the $65 Million bond would increase the tax rate $10.12. Add to this the average $8 tax rate increase to cover the budget increases, and the tax rate goes up an additional $8, bringing it to $428.57 per $1,000 of assessed valuation. Provided the assessment stays the same, our $700,000 homeowner will pay a school tax of $8,036 ( an additional $452 per year in 08-09.)
In 2008-2009, the tax rate increase slows on paying off the $65 Million in bonds because the certiorari bonds payments decrease. Our $700,000 homeowner pays only an additional $4.76 per $1,000 of assessed valuation (less than the cost of a Starbucks Caramel Machiatto Vente Size cup of coffee) in 2009, plus the average $8 more to cover the compounding school budget, giving us a projected tax rate of $423.21 per $1,000 of assessed valuation. This figure gives our $700,000 homeowner a school tax of $7,935 a year (an increase of $392 over 2005-2006).
Mr. Schreurs last projection shows the school tax payer receiving more relief in the tax rate in 2009-2010, when the projected tax rate increase dips to $4.65 per $1,000 of assessed valuation. You add that $4.65 to the $410.45 and the $8 average tax rate increase for the general school budget compounding and you come up with a $423 per $1,000 of assessed valuation. Given the 18.475 assessed value and multiplying it by $423 gives you a total school tax of $7,931, or $388 more per year in school taxes by 2009-2010.
Assumptions.
Now these calculations are straight line and assume the assessment of the $700,000 home stays the same. If it is increased by the city, of course the approximate tax increase per year on the $16 Million in Certs, and $65 Million in renovation bonds, would increase, as it would increase given more than expected increases in other school budget items. The tax rate increased $9.61 budget to budget from 2004-2005 to 2005-2006, and the School Business Office told WPCNR that an $8 average was a legitimate figure to use for this calculation of the average increase in the tax rate going forward, separate from the increase in the tax rate directly related to the paying off of the bond issues. Projections were not carried beyond 2010.
The $50 Million Bond.
Should the School District decide to bond for the lessor amount, $50 Million, the increase in taxes on the $700,000 home are less: $432 in 07-08, $332 in 08-09, and $330 in 09-10.
