2013-08-30-Ad hoc Townwide Facilities Master Planning Committee (Final Report of Committee)

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the referendum, then that excess increase is not excluded from the limitations of Proposition 21/2 unless another referendum is successful.) Through the life of the excluded debt service on each bond, each year the level principal payments decrease the remaining principal, which in turn, causes the yearly interest payments to decrease and therefore provides the funding source with additional relief each year. (After the last debt - service payment, the next - year's relief is more substantial as the level principal payment also stops along with there being no interest payment.) If the source of the excluded debt service had been the CPF, then each year -by -year reduction provides additional resources for other CPF- funded projects - whether using cash or new debt - but does not directly affect the tax payers as the CPF receives a fixed 3% surcharge on the property tax. However, if the source of that excluded debt service had been the GF, then those reductions provide an opportunity to have some excluded debt sourced by the GF for another project incurred without increasing the burden on the taxpayers. If another project does not take on excluded debt financed by the GF, then - all other things being equal - the taxpayers would see a reduction in one component of their tax burden. The 3% surcharge component for the CPF would also be reduced but only by 3% of the GF change, so it would likely be a very minor additional reduction. In the model, a comparison is first made with that availability of capacity within previously approved excluded debt service. This comparison is with the projects or portions of projects attributed to bonded debt not compensated by CPF or MSBA funds. A positive value in the row 46(d) entitled "Difference: Changes in Debt Service for Authorized Debt less Designated Debt Service Project Costs" means that approval of the project would not require an increase in property taxes above that previously approved or excluded, and a negative value means the financing needs increase above that previously approved level. Debt Service as Percent of Tax Levy The costs of the approved Debt Service when added to the new project debt service costs is compared as a percent of the Town Tax Levy in row 49(f). This indicates the relative burden on the Tax Levy for these capital projects. Community Preservation Fund The Town's Finance Department prepared an analysis of (1) prior ending -year CPF balances; (2) the 10% of each year's new revenue to the CPF being placed in the purpose- specific Reserves for Community Housing, Historic Resources and Open Space; (3) funds already committed; and (4) funds remaining available for appropriation to CPA - eligible projects. This is included in the third spreadsheet of Appendix E From this analysis, the lines for "Source: Community Preservation Act Funds," rows 51 -53 are calculated from the values for each fiscal years. A comparison is made with the project costs funded with available CPF in row 53. TOWNWIDE FACILITIES MASTER PLANNING 41