Comments on: 1.0 MAPLE DALE BOND ISSUE Nov.02, 2010

By: Administrator

Administrator — Wed, 03 Feb 2010 23:04:21 +0000

The Northeast Suburban Life asked these Jan. 20, 2010 questions regarding the potential bond issue; “What concerns or questions do you have about the bond issue? A this point, are you likely to support it? Why or why not?”

GW answered – ” I want to know all the facts before I will vote for a bond issue. What are the specific spending proposals?
What alternatives were considered? Why don’t they use part of the $39 million cash reserve for this work? The state recommends holding 6-7 percent of revenue in reserve. Sycamore has 52 percent in reserve.
Why did the schools add 40 fulltime equivalent employees during the last couple years while enrollment was holding steady? Didn’t they know of the need for renovations back then?
I also want to know the breakdown on the $4.5 million budget increase implemented this year. Where is that taxpayer money going? At this point I would vote against it because I have too many unanswered questions and concerns.”

By: propertyowner333

propertyowner333 — Thu, 21 Jan 2010 15:08:40 +0000

The Northeast Suburban Life CH@TROOM section of the January 20, 2010 issue asks these questions.

The Sycamore Community Schools residents
may be asked to approve a bond issue for
improvements to the Maple Dale Elementary
School and the board of education offices.

What concerns or questions do you have
about the bond issue? At this point, are you
likely to support it? Why or why not?

Every week The Northeast Suburban Life asks
readers a question they can reply to via e-mail.
Send your answer to
nesburban@communitypress.com with
Chatroom in the subject line.

By: propertyowner333

propertyowner333 — Fri, 15 Jan 2010 13:57:46 +0000

Princeton schools seek vote on $120M bond issue
…Princeton school leaders said this week that new federal stimulus bond programs will help the district finance a new high school and middle school.
…School leaders Monday voted to put a $120 million bond issue on the May ballot.
…In 2008, voters rejected a $140-million school plan.
…Princeton plans to use federal Build America Bonds and Qualified School Construction Bonds, created by the Obama Administration.
…In 2013 the average owner of a 100,000 home would begin paying about $150 a year more taxes on the bonds.
…They would get a lot for their tax dollars, Pack said.
…With Build America bonds, the federal government pays 35 percent of the interest costs to bond buyers. Princeton gets to borrow at below-market rates.
…Princeton also plans to issue Qualified School Construction Bonds, which have little or no interest. Because of its size it obtains the funds with no completion from other districts.
…But suburban, rural districts and smaller urban districts will compete against each other for the funds.
…Pack said Princeton will be high on Ohio’s list because of its ethnic and racial diversity and its percentage of low-income students.

Source: Enquirer by Denise Smith Amos 1/15/2010

By: propertyowner333

propertyowner333 — Thu, 14 Jan 2010 23:45:16 +0000

Curious, I’ll try to answer your question this way.

At this time we really don’t know how much the board will actually want, and what the interest rate will be, etc., because they are still analyzing the situation.

But, we do know that a 5.5-mill ($8 million) continuous levy passed in May, 2009. That levy currently costs a $100,000 market value home owner $134 annually. A $200,000 homeowner pays $268 annually and so on.

A bond issue and a continuous levy have different characteristics. In the case of a bond issue, all district taxpayers will eventually pay the amount of the loan (let’s pretend it will cost $8 million to do the renovations) and $320,000 annual interest (assuming 4% interest rate) over the life of the bond. For a $100,000 home owner, that would amount to a onetime payment of about $134, and annual interest payments of about $5 over the life of the bond.

By: propertyowner333

propertyowner333 — Thu, 14 Jan 2010 22:52:19 +0000

Curious asks, what would the cost be for a $100,000 market value home? My home is worth $267,000. What would I pay?

By: propertyowner333

propertyowner333 — Thu, 14 Jan 2010 22:46:18 +0000

A curious resident said, I feel stupid because I am not sure I understand this bond issue thing…could you explain it to me and the financial impact on taxpayers? Is this another request for money from us?

By: propertyowner333

propertyowner333 — Thu, 14 Jan 2010 17:48:03 +0000

Yes Curious, it is another request for money from the residents.

If the board decides to put a bond issue on the ballot, they are asking voters to give them permission to borrow money (lets say $10 million) in the financial market to cover the projected $10 million construction cost of Maple Dale and board office modifications.

If a bond issue passes by a majority vote of YES, the voters commit ALL property owners (taxpayers) to being taxed annually to cover the entire cost of the loan. That cost includes the loan amount (principal) $10 million and the interest (4.5% annually) for the unpaid loan amount i.e. $450,000 yearly. Twenty five years times $450,000 annually equals $11.25 million plus the principal of $10 million makes the total cost $21.25 million. [Just like when you borrow money for a car or your house.]

So, the bond issue would have to be large enough to cover both the principal and interest. If the board expects to pay it off (pay back to the lender) in year 2025, the total cost to taxpayers would be $21.25 million. Property owners would see their property tax bill increase.