The Northampton Board of Supervisors continue to look at creative options to look for money to either repair Northampton Middle and High School or build a new school outright.
At Tuesday night’s work session, Finance Director John Chandler presented six more scenarios that are the result of out of the box thinking from the County’s financial managers Davenport & Company.
The first set of scenarios, referred to as Scenarios 4A, 4B & 4C, would all keep the County making payments through 2053. Scenario 4A assumes no tax increase and keeps the County’s debt service at $3.1 million annually. Under this plan, additional debt would be borrowed as previous debt is paid off. The County would borrow $1.6 million in 2020, $24.5 million in 2026, $10 million in 2030, $6 million in 2034 for an approximate total of $42 million in new debt. This option would cost the County $62,047,693.
Scenario 4B would include a two cent tax increase, bringing the County total to 85 cents per $100 value of real estate. Scenario 4B would borrow $6.5 million in 2020, $24.5 million in 2026, $10 million in 2030, $6 million in 2034 for an approximate total of $47 million in new debt. This scenario would eventually cost the County $69,261,120.
Scenario 4C would assume a four cent tax increase and would borrow $11.3 million in 2020, $24.5 million in 2026, $10 million in 2030 $6 million in 2034 for an approximate total of $51,965,579. The total cost for this plan is $76,461,120.
Scenarios 5A, 5B and 5C would borrow drastically less money, would all include two cent tax increases and would be paid off by 2041. Scenario 5A would borrow $11,225,000 and when paid off will have cost the county $16,567617.
Scenario 5B would borrow $20,360,000. However, the County would pay interest only through June of 2025. Scenario 5B would cost the County approximately $31,295,667.
Scenario 5C would borrow $32,400,000. Under this scenario, the County would pay capitalized interest through 2022, interest only through 2025 and then would make structured principal payments in 2026. This plan would cost the County $48,062,400.
No action was taken on any of these proposals at Tuesday night’s meeting. Supervisor John Coker reported he, along with Oliver Bennett and Dave Fauber, recently had a productive meeting with the School Board and felt that the conversation was moving in the right direction.