The total cost of the Building Modernization Project is projected to be $56 million without impacting the current tax levy. This is done through a number of financing methods:
- Smart Schools Bond Act funds – $4.9 million. This is a one-time allocation from New York State.
- The remaining $51 million will be paid for primarily through State Building Aid, the local Capital Reserve and retiring debt. See below for additional information.
What are the revenues to support this project?
New York State Education Department (SED) Building Aid
The Troy City School District 2019-2020 Building Aid Ratio is 90.3 percent. For this project, we have conservatively budgeted for 85 percent. That means that for every dollar the District spends, we anticipate we will get 85 cents back from SED. $4.9 million in Smart Schools Bond Act funds is not aidable. We expect to receive approximately $43.4 million in State Aid.
A portion of this project will be funded by retiring debt. The amount funded through retiring debt is $25 million. Approximately 85 percent of these borrowed funds will be reimbursed through Building Aid. Approximately $3.7 million of the local share is funded through this method.
The Troy City School District has been allocated $4,987,451 in Smart Schools Bond Act funding. This represents 8.8 percent of the entire $56 million project. This allocation will be used primarily to secure vestibules for further security enhancements.
The remaining portion of the local share is $3,922,500. This plan calls for the local share to be funded through the Capital Reserve that was created in 2015 with voter approval. This Capital Reserve was strategically created to help fund future projects like this. This will allow us to borrow $26.15 million.