Borrowing would create annual debt-servicing costs that would need to be incorporated into the District’s financial plan.
For public information purposes, the following table shows the approximate property-tax impact of borrowing between $2 million and $5 million over 20 years at an assumed interest rate of 4%.
| Borrowing amount |
Estimated annual debt servicing |
Approximate municipal tax increase |
Approximate monthly impact for an average residential property |
Approximate annual impact for an average residential property |
| $2 million |
$147,164 |
1.02% |
$1.70 |
$20.41 |
| $3 million |
$220,745 |
1.53% |
$2.55 |
$30.62 |
| $4 million |
$294,327 |
2.04% |
$3.40 |
$40.82 |
| $5 million |
$367,909 |
2.55% |
$4.25 |
$51.03 |
These estimates illustrate potential debt-servicing costs only. They do not include future facility operating, maintenance, renewal or lifecycle costs. Those costs, and how they could be funded, have not been determined.
Under the maximum borrowing scenario of $5 million, the estimated annual debt-servicing cost would be approximately $367,909. This is equivalent to an estimated 2.55% increase in municipal property taxes, or approximately $4.25 per month—$51.03 per year—for an average residential property.
These figures are estimates only and do not represent an approved tax increase or final borrowing plan. Actual costs would depend on:
- the final amount borrowed;
- interest rates at the time of borrowing;
- the repayment term and timing of the borrowing;
- applicable Municipal Finance Authority requirements;
- grants, fundraising or partner contributions;
- changes in the municipal tax base; and
- other financial-plan decisions made by Council.
The estimates apply only to the District’s municipal portion of the property-tax notice. They do not represent the percentage change to the total property-tax bill, which also includes amounts collected for other taxing authorities. The impact on an individual property would vary depending on its assessed value and property classification.
A majority “YES” vote would not authorize borrowing or approve a property-tax increase. If a borrowing proposal advances, updated financial information would be prepared and presented publicly before Council considers borrowing or seeks any required statutory approval.