District Contact Information

Daniel T. Connor

227 Main Street
Goshen, NY 10924
(845) 615-6720

Central School District

District news

How can a $30.48 million capital improvement project have no effect on the tax levy?

February 7, 2017 - The proposed project will cost $30,483,850. The project will be funded by $9,054,000 from the district’s capital reserve fund and $1,343,184 allocated by New York State through the Smart School Bond Act.

The remaining $20,086,666 from the local tax levy would be bonded, and approximately $17 million of that cost will be offset by state aid over 15 years.

The proposed project is timed so that debt service from past capital projects will soon be retired. The estimated local share to be paid by taxes for the new capital improvement project will be approximately $171,058 less during most years than the local share that is currently being paid on the retiring debt – thus resulting in no impact to the tax levy for debt service.

Think of it as buying a new car: your current car is almost paid off, and you purchase a new car with a monthly payment that is equal to or less than your current monthly payment. You don’t feel a difference in your bank account because you are continuing to pay the same payment for your new car as you did with your old car.

State aid will not cover the entire local share in fiscal years ending June 30, 2017-2019, and the district may use money from its debt service reserve as well as building aid and appropriated fund balance to ensure that the project does not affect the tax levy during those years.

The project will be paid with bond anticipation notes (BANs) for the first three years beginning in 2018, and will then be bonded for 15 years from 2021-2036.