Portland Public Schools Consolidation Plan

Financial Overview

The total estimated cost of this project is $109,000,000. This cost is offset by $66.5 million in projected State reimbursement. As a result, the Town of Portland’s estimated share is $41.9 million, including bond issuance costs.

The Town’s share will be further offset by several anticipated financial benefits, including $900,000 in projected overhead savings resulting from consolidation, $1,200,000 in projected new annual revenue from the Brainard Place and Nordic Spa developments, and $500,000 in savings from the retirement of the Secondary School bond.

After accounting for State reimbursement, overhead savings, new development revenue, and the retirement of the Secondary School bond, the mill rate increase during the first ten years of the bond is expected to range from 0.08 mills to 1.65 mills, with a ten-year average increase of approximately 0.62 mills.

After the first ten years, the mill rate impact declines significantly because the net grand list grows at the same time that the bond’s principal and interest payments decrease.

Projected Mill Rate Increase (10-Year Average) - 0.62

The total estimated cost of this project is $109,000,000. This cost is offset by $66.5 million in projected State reimbursement. As a result, the Town of Portland’s estimated share is $41.9 million, including bond issuance costs. The Town’s share will be further offset by several anticipated financial benefits, including $900,000 in projected overhead savings resulting from consolidation, $1,200,000 in projected new annual revenue from the Brainard Place and Nordic Spa developments, and $500,000 in savings from the retirement of the Secondary School bond. After accounting for State reimbursement, overhead savings, new development revenue, and the retirement of the Secondary School bond, the Town projects that an additional 0.62 mills, on average, will be required to generate the revenue necessary to repay the bond.