The Nevis School Board unanimously approved adopting a resolution granting a tax abatement to help pay for paving the school parking lot following a June 24 public hearing.
The total estimated amount of the abatement is $104,479 over five years, which will be used for the principal and interest on $95,000 of bonds issued to finance the parking lot projects and related financing costs. The bonds will be paid back over a five-year period at an estimated interest rate of 3.25 percent. The abatement will be effective on property taxes payable in 2020.
"One thing I want to emphasize is the low tax impact we'll see," Parks said. "The estimated tax on a $100,000 home is $2 a year, so $10 over the five-year period of the bond."
There were no public comments about the abatement. Parks said the ground is too wet for work on the parking lot at this time, but hopes are to have work completed before school begins in September.
"Anderson identified it wouldn't take very long from when they start putting in the top layer," he said. "At this point we just have a couple of curbing areas that are left out there."
The board also authorized the sale of $285,000 in facility maintenance bonds in addition to the the $90,000 in tax abatement bonds. That includes the $181,000 the district has already been spent on the storm water management project from the general fund.
At the July 22 board meeting, plans are for the board to award the sale of tax abatement bonds and on Aug. 15 have the closing and receive the proceeds from the bond sales.
"The entire bill (for the storm water project and paving) is $370,000 or $380,000," Parks said. "Long-term Facility Maintenance (LTFM) funds will be spread out over 10 years to pay back that $285,000 bond. There is zero tax impact that goes along with it."
He explained that means approximately 14 percent (less than $25,000) of the $215,000 LTFM budget each year will go towards paying back the $285,000 bond. Besides the storm drain and paving project, other long-term maintenance in the district's 10-year plan includes window replacement and indoor air quality projects. The bond makes money available to do these projects without depleting the LTFM fund and pay the money back over time.
"With the major portion of our building being put together in 1987, things go wrong after 30-some years," he said. "We're not willing to deplete the LTFM fund and try to catch up if that happens."