Understanding the Proposed School Project Financing

At the March 9, 2026 Region 15 Board of Education meeting, financial advisors from Phoenix Advisors presented a detailed analysis of how the proposed replacement of Pomperaug Elementary School (PES) and Gainfield Elementary School (GES) could be financed.

The presentation reviewed the district’s existing debt, projected borrowing for the project, and potential repayment schedules. The analysis assumes approximately $90 million in net new bonding after anticipated state grants, with bonds issued in phases over time to manage costs responsibly.

Key points from the presentation include:

-Analysis reviews both existing and proposed district debt service.
-Net new debt after anticipated state grants is projected at approximately $90 million.
-Financing assumes the use of short-term Bond Anticipation Notes (BANs) followed by three separate bond issuances of approximately $30 million each.
-Repayment scenarios were modeled using 20-year, 25-year, and 30-year amortization options.
-Projected bond interest rate: approximately 3.25%, consistent with recent AA-rated municipal bond sales near 3.10%.
-Project costs would be allocated according to the district formula: approximately one-third to Middlebury and two-thirds to Southbury.

The estimated impact to taxpayers is:
Approximately $7–$14 per month for a typical single-family home (based on 30 year bond)
Approximately $2–$4 per month for a typical Heritage Village condominium (based on 30 year bond)

Final tax impact will depend on bonding structure, interest rates, mill rates, assessed home values, and debt scheduling, but a significant portion of the cost will be offset by state funding and existing debt capacity.

The Board also reviewed the legal authorization process required for the project, including the scheduling of a public hearing and district meeting, followed by a community referendum planned for May 6, 2026, where voters will decide on the proposal to replace the district’s two oldest elementary schools.