The City of Easthampton holds a special election on Tuesday, May 18 that gives residents a chance to vote on a Proposition 2 1/2 debt exclusion to finance the construction of a new high school, which at last estimate would cost approximately $48 million. The debt exclusion allows a temporary override of Prop. 2 1/12 for the single purpose of financing the bond required to pay the remainder of the project’s cost that won’t be paid for by state and other funding sources.
“The temporary debt exclusion increase in taxes is specifically related to raising enough money to cover the cost of paying off the debt incurred for a specific capital project, in this instance a high school,” said Easthampton Mayor Michael Tautznik. “When the bond is paid off the city can no longer collect the extra property tax money.”
What does all that mean to the average homeowner? “The tax increase will amount to $1.21 per $1,000 of property valuation in the first year (2013), and will be less in each of the remaining 19 years of the 20 year mortgage (bond),” Tautznik said
Proponents argue that the current high school is one of the most antiquated and deteriorated in the state and that its replacement is long overdue. They also point out that the low interest rates Easthampton has been able to secure for the loan will likely be higher in years to come, upping the total cost of the project. They also argue that even though the exclusion will raise property taxes, having a new high school will also likely raise the value of properties in the city since schools are a big part of the general equation for determining real estate values.
Opponents of the measure argue that now is a bad time to raise property taxes on Easthampton residents since many homeowners, especially seniors, people on disability or other fixed incomes, and those who have recently lost their jobs face increased financial vulnerability thanks to the economic turmoil of the last two years.
