Saturday, July 26, 2008

Monthly Costs of Project

I have received a lot of emails regarding the monthly costs presented at the forum. The following post is on the High School Renovation Blog to explain how the numbers were arrived at:

"During the Community Forum presentation a slide was included to show what the range of project costs would look like in terms of monthly tax increases for a $225,000 home in Mt. Lebanon (the average price of a home sold here in 2007). The numbers are based on bond schedules prepared by the District’s financial advisors using municipal bond rates as of July 18, 2008 and assuming State reimbursement of 16% of the cost of the bond payments. Based on that information, a $90 million project would cost a homeowner about $45 per month, a $110 million project would cost that same homeowner about $55 per month, and a $130 million project would cost about $65 per month."

There were some residents that were confused a bit by the projected monthly numbers juxtaposed against the total project cost. I believe the above information mostly solves that mystery. The post with the linked spreadsheet I had earlier did not include this 16% reimbursement rate.

Thanks for reading.