Barrington council, public to decide on lifting tax cap
School bond, other costs result in a potentially significant tax increase
In November, residents voted to approve a multi-million dollar bond to build a new middle school in town.
Next up, council members are expected to vote on whether the town should exceed the 4 percent tax cap. And if council members approve that measure, the tax cap issue will be placed before residents at a special financial town meeting in March.
According to the school district's website focused on the middle school project, the town council will meet on Jan. 9, 2017 and is scheduled to vote on exceeding the tax cap in order to finance the school bond. The bond is not to exceed $68.4 million.
"The measure requires approval of 4 out of 5 council members," stated the website.
If approved by the council, the measure must also be approved by voters at a special town meeting. That meeting is slated tentatively for March 2017.
Barrington resident TR Rimoshytus said he is concerned about offering the school department "an open checkbook" during budget season.
Mr. Rimshytus said he supports the construction of a new middle school in town, but added that he is worried that an invitation to exceed the state-mandated 4 percent tax cap will result in other spending increases by school officials.
Mr. Rimoshytus pointed a finger at the costs associated with changing school start times in Barrington. Early estimates showed that the shift to later start times at the high school and middle school — moving from about 7:45 a.m. to 8:30 — will require nearly $500,000 in associated annual cost increases.
The middle school construction bond will reportedly cost the town about $2.7 million more each year over the life of the 25-year bond, and there are also contractual increases — teachers and municipal union employees, utilities, etc. —wrapped up into each budget.
Add up all those increases, said Mr. Rimoshytus, and Barrington residents could find themselves buried under burdensome tax bills.
"In my opinion, I think you're going to see a lot of houses going up for sale," he said.
Mr. Rimoshytus said school officials should reconsider their decision to change school start times. He added that officials could even put the upcoming change to a vote during the special financial town meeting in March.
"Let the public decide," he said.
The timing of these votes is also problematic, said Mr. Rimoshytus. He said the school budget will not be finalized when the March vote is taken.
Deadlines and bond interest rates are factors in the timing.
Council member Steven Boyajian said the town needs to gain state approval to exceed the tax cap before issuing the bonds, and added that "With upward pressure on bond yields as a result of recent and projected Fed rate increases there are reasons to move quickly.
"On the other hand, before the council and voters approve any levy increase, I think it is important for key information to be disseminated. We should see the latest cost estimates so that we know the middle school can be built within the voter approved cost. We also need to closely review cash flow projections to determine whether the town has the cash to pay the school bond debt service before taxes are collected at next year’s higher rates."
According to the school district's website focused on the middle school project, initial conservative estimates place the bond interest rate at 3.4 percent.
Officials are also anticipating some debt service to come "off the books" soon — "Payments on the bond that financed the Barrington High School project, which total $670,000 annually, will be removed from the town’s debt list in 2020. Preliminary estimates indicate that could allow the residential property tax rate to be reduced two years from now by as much as 24 cents per $1,000."
Officials said the middle school bond will result in a tax rate increase of $1.12 per $1,000 of assessed property value.
