Financing the New Gorham Elementary School Project

Total Project Budget                                                                                   $25,833,908   (100%)

State Approved subsidized project budget                                   $23,192,766

Total State Costs (excluding interest costs)                          $23,192,766   (89.8% of project)

Local Cost of State Approved project                                                $0***

Local Costs in excess of State Approved                                          $2,480,000

Total Local Costs (excluding interest costs)                          $2,480,000      (9.6% of project)

Grant Funding                                                                                 $161,142        (0. 6% of project)

Estimated cost to taxpayers:

Based on the FY2008-09 current Town Valuation of 1,232,828,500

a 20 year bond at an estimated average interest rate of 5.07% issued Fall 2009

an average home valuation of $200,000

and the first principle payment due in FY 2011:

Year                Costs              Tax Impact                        Per Home

FY10               $62,868          $0.051                         $10.20

FY11               $246,593        $0.200                         $40.00

FY12               $240,306        $0.195                         $38.98

FY13               $234,019        $0.190                         $37.96

FY14               $227,732        $0.185                         $36.94

***State Approved Subsidized project budget amount is anticipated to be entirely absorbed in State Education Funding. As Gorham currently contributes the full statewide education mill rate of 6.65 per thousand, the addition of State Approved debt service for this project will have no impact on our overall level of local contribution under current EPS funding parameters.