How would the Milton School District referendum affect my tax bill?
It’s the most pressing question on the minds of many district voters as the Nov. 7 referendum approaches.
- The tax rate for the 2016-17 school year was $9.16. That equates to $916 annually on a $100,000 home. Milton approved its 2017-18 tax rate Monday at $8.41, which lowers to $841 the annual school taxes on a $100,000 home.
Even if the referendum is approved, it would not affect this year’s tax bill. It would not kick in until the 2018-19 academic year.
- The district estimates an approved referendum would add $1.46 to its tax rate, or $146 to the tax bill for a $100,000 home. It arrived at that number using fiscally conservative projections, so the tax impact could be lower, District Administrator Tim Schigur said.
For an estimate of how that would affect next year’s tax bill, $1.46 added to the current tax rate would result in a $9.87 tax rate, resulting in a school tax bill of $987 for a $100,000 home. The 2018-19 tax rate will not be determined until next year.
- If the referendum is approved, the district is considering a 26-year loan. It would increase long-term interest costs but reduce the short-term tax impact. The district has not locked in a financing plan before the referendum because it wants to retain flexibility to get the best deal, Schigur said.
Milton could pay off a loan for a new high school before 26 years. The district repaid a 20-year loan to reopen Harmony Elementary in 15 years thanks to refinancing and positive economic changes, he said.