Please Understand the Real Costs Before You Vote on June 10
Cape Elizabeth residents deserve clear, honest information—not shifting messages or hidden agendas—about the proposed school construction bond. Here’s the straightforward truth: this bond proposal will result in massive, unsustainable tax hikes.
Below, we outline the critical facts behind the proposal—and share why a smarter, more cost-effective solution exists for our students and our town.
1. “Spread Over Six Years” is Misleading
The School Board claims the tax burden will be spread over six years—but that’s misleading. There is no guaranteed borrowing schedule. The $86.5 million bond issuance will depend entirely on market conditions.
If interest rates continue to rise, spreading borrowing over six years could significantly increase total borrowing costs, ultimately leading to even higher taxes for residents.
Either way, residents face at least a 12–13% tax increase from the bond alone
2. The True Tax Impact Exceeds 20%
The recently approved FY2026 budget already includes a 7.7% property tax increase—the largest in recent memory. Add to this:
- A proposed annual $1.2 million for school Capital Improvement Projects (CIP)
- The end of COVID-era state grants
- An anticipated $800,000 drop in state education aid due to declining enrollment
Together, these factors push Cape Elizabeth’s tax increase well above 20%.
3. Rising Interest Rates Present a Real Threat
School Board projections assume borrowing at 4% interest, yet current municipal bond rates already hover around 4.4–4.6% and climbing. Even minor rate increases could translate to millions more in interest—a direct hit to taxpayers.
4. Taxes Could Double Over the Next Decade
Cape Elizabeth has averaged 6.5% annual tax increases over the last three years, even after draining $2 million in reserve funds to soften the blow. With the FY2026 increase at 7.7%, future labor contracts could easily push next year’s tax hike closer to 10%.
If this trend continues unchecked, Cape Elizabeth’s taxes could double within ten years, putting essential services and budgets for teachers, public safety, and public works at risk.
5. Declining Enrollment Means Less State Aid
Cape’s enrollment numbers are shrinking—with only 89 new kindergartners compared to 129 graduating seniors. Fewer students mean significantly reduced state funding, shifting the financial burden onto local taxpayers.
6. The Current Proposal Is Excessively Large and Costly
The proposed new middle school significantly exceeds state space guidelines (243 sq. ft. per student versus the state-recommended 160 sq. ft.). With enrollment declining, this oversized facility is an unnecessary and costly luxury, not a need.
A Better Alternative: The “Three-School Solution”
There’s a smarter plan—one focused directly on student needs, long-term sustainability, and taxpayer affordability:
- Addresses all critical issues at all three schools immediately
- Saves taxpayers at least $45 million compared to the current proposal
- Includes a modern middle-school wing with advanced classrooms, STEM labs, and special education facilities
- Offers a dedicated Performing Arts Center, not a “cafetorium”
- Ensures minimal disruption to students during phased construction
- Builds brand-new, secure entrances, cafeterias, and learning spaces
- For more information on the “Three School Solution,” click here.
Take Action: Vote NO on June 10—and Share!
Cape Elizabeth stands at a pivotal moment. Let’s choose a responsible solution:
- Meets our students’ real needs
- Protects our community from skyrocketing taxes
- Secures Cape Elizabeth’s financial health for generations
Vote NO on June 10, and support the community-focused Three-School Solution.
Please share this important information with your neighbors and friends.