What is the projected tax impact to district property owners?
The total cost of the proposed projects will not exceed $48.8 million and payments will be finalized within 21 years. The projected tax impact on property owners is estimated to be $13/year (or $1.08/month) for each $100,000 of equalized property value.
This the second time CVTC has posed a referendum to its district. In 1998 a referendum was passed when the taxpayers agreed to fund projects totaling $10 million. That amount was paid off in eight years, prior to the full amortization period.
What is the long-term tax impact?
Similar to a mortgage payment for a home loan, the College would borrow to complete projects over the next three years and the tax impact over the next 15-20 years would be reflective of the amount of these borrowings. The projects assume multiple borrowings amortized over 21 years using planning interest rates of 3.75% - 4%. Estimated impacts are based on 2018 Equalized Valuation (TID-OUT) of $24,723,807,042 with no annual growth thereafter.
The borrowing would not exceed the amount proposed in the referendum question of $48.8 million dollars which would be spread over the 11-county district resulting in an estimated $13 per year ($1.08 per month) for each $100,000 of property value.
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Why doesn’t the College increase tuition to cover the project costs?
Chippewa Valley Technical College is dedicated to providing a quality, affordable education for our community members. The Wisconsin Technical College System sets the tuition rate each year for all technical colleges in the state. CVTC does not have the discretion to raise or lower tuition rates for any purpose.
Why is a referendum necessary to fund these projects?
The amount of money CVTC can spend on new buildings, additions, or land acquisition is determined by state law. The College is limited to $1.5 million at each campus over a two-year period without obtaining voter approval. Any new buildings, additions, or land acquisition beyond the $1.5M cap (not funded through gifts, grants, or federal funds) must be approved by voters in a public referendum.
If the referendum passes, will any of the funds be used for salary or benefits for employees?
No, this is a capital project and no funds will be used for salaries or benefits.