Milton to Seek Special Legislation to Lower Tax Impact of School Debt
Key Points
- The town will petition the General Court for the right to use interest from bond proceeds to pay down project debt.
- Officials estimate the move could save taxpayers $1.7 million in interest earnings.
- The strategy aims to keep the median home's debt service impact under $600.
- The petition is contingent on the final passage of the school building project by Milton voters.
Town Meeting approved Article 6, authorizing the Board of Selectmen to petition the State House for special legislation regarding the investment of bond proceeds. The move is modeled after similar legislation successfully passed in Arlington and is designed to mitigate the tax impact of the newly approved school building projects.
Warrant Committee Chairman C. McCarthy explained that the legislation would allow the town to earn interest—often referred to as arbitrage—on borrowed funds. This interest, estimated at approximately $1.7 million, would be applied directly to the project's debt service. McCarthy noted this strategy is essential to bringing the projected debt service under $600 for the median Milton home. Without this specific legislative approval, any interest earned would likely be diverted to the town's general fund rather than being used to provide direct tax relief for the project.
In response to questions from the floor, it was confirmed that this petition would only move forward if the broader school building plan (Article 4) is approved by voters at the ballot box. The article passed via a voice vote.
Motion: To authorize the Board of Selectmen to petition the General Court for the described legislation.
Vote: Passed