Thank you, Voters!
A Message from Town Board: Thank You, Voters!
After an annual budget review, the Finance team and Town Board determined that the town has sufficient funds to fully pay off the remaining Community Recreation Center expansion project debt in full, 12 years earlier than initially projected. Fiscal stewardship continues to be one of the town's highest priorities and the early payoff exemplifies this commitment. Town Board would like to thank the Windsor community for all their support and trust with their tax dollars.
What was the Community Recreation Center expansion project?
The Community Recreation Center expansion project was completed in 2016 and included the addition of a wellness studio, auxiliary gym, indoor walking track and aquatic center.
What made the expansion project possible?
- In November 2014, Windsor voters approved a 0.75% sales and use tax increase to fund the retirement of the debt incurred for the expansion project.
- In 2015 bonds were issued with a true interest cost of 3.84% with the final maturity of December 1, 2034.
- In 2017, the town refinanced the bonds with a loan through JP Morgan Chase. The loan allowed the debt to be retired without an early repayment penalty, reduced the final maturity from December 1, 2034, to December 1, 2031, and reduced the interest rate from 3.84% to 2.61%.
How does the early payoff of the expansion project impact the Windsor community?
Since the expansion project will be paid off 12 years earlier than initially projected, .55% of sales and use tax will be eliminated as directed by the original ballot measure, effective January 1, 2023. The remaining 0.2% approved in 2014 will continue to be used exclusively for ongoing maintenance of the facility.
What does the early loan payoff mean for sales tax rates in the new year?
Until January 1, 2023, the current sales and use tax rate is 3.95%. Looking ahead, the paid-off recreation center expansion loan will eliminate .55% and reduce the tax rate to 3.40%.
However, there’s another influencing factor for the sales and use tax rate for 2023. On Monday, Aug. 22, 2022, the Windsor Town Board referred a 0.25% Open Space Sales Tax increase to voters to help fund the future purchase of land for use and protection as open space. If approved by Windsor voters in the Nov. 8 ballot, the local sales tax rate will increase from 3.40% to 3.65%. Combined with the retirement of the Recreation Center Expansion Tax, this would constitute a net decrease to the sales tax rate of 0.3% as compared to the current tax rate. To summarize:
- Current rate: 3.95%
- Less reduction: .55%
- Reduced rate: 3.40%- - without Open Space Tax rate
- Open Space rate: .25% - - if approved by voters on November 8
- Resulting rate: 3.65% - - if approved by voters on November 8
To view ballot language and frequently asked questions and answers about the Open Space Sales Tax measure, visit windsorgov.com/openspacesalestax.
How will we celebrate the paid-off expansion project?
Parks, Recreation & Culture plans to host a community celebration before the end of 2022. For updates on this celebration follow Parks, Recreation & Culture social media accounts @WindsorPRC.