Project Cost
The Town Council set a total project cost of $16 million, and a net municipal cost (or the amount the Town anticipates it will bond for this project) of $9 million. This will be achieved through the use of $7 million in American Rescue Plan Act (ARPA) funds.
The American Rescue Plan Act of 2021 provided funding to state and local governments, and Farmington’s Ad Hoc ARPA Committee recommended that ARPA funds be used to undergo large capital expenditures that have town-wide long-term benefits that will positively impact taxpayers rather than specific requestees. This will enable funds to be distributed in a more equitable manner and allow the Town to fund projects that may not otherwise be afforded. The use of ARPA funds for this project lessens the cost of the project to the Farmington taxpayers.
Tax Impact
Because of Farmington’s ongoing retirement of existing capital projects bonded debt, there will only be two years that the 1928 Building project will increase the property tax. For example, a homeowner with the average assessed value of $301,455 (assessment is 70% of the market value of a home) is estimated to be $44.96 in total, averaging $8.99 per year for the first five years of the bond. In the remaining years of the bond, there are no incremental increases to taxes due to the 1928 Building debt issue as the required debt service is absorbed by the retirement of old debt.
Assessment is 70% of the market value of your house. So, a house assessed at $301,455 has a market value of $430,650.
To determine the impact of the 1928 Building Project on your property tax, please refer to the table below:
To determine the tax impact, a financial forecast was presented to the Town Council by the Town Finance Director of January 24, 2023. The forecast was prepared by the Town of Farmington Finance Department using historical data and certain financial assumptions. This forecast is a planning document and is updated on an ongoing basis as needed.
For the 1928 Building Project, the Town Council set the net municpal project maximum of $9 million. This bond is included in the financial forecast linked below, highlighted in yellow.
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