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Let's talk facts and figures

How would funding a new elementary school affect you? Let's talk numbers.

 

The 2019 bond proposal will have little to no tax increase on the average Monument homeowner ($400,000 home value). How is that so? This is a result of more homes contributing to the tax base, the decrease in Palmer Ridge and Prairie Winds overall debt, new assessment values, and the D38 Board of Education working with financial advisors to structure the most conservative bond proposal, costing under $30 million. Funding a new school could actually increase local property values. The average business owner's taxes ($400,000) would be impacted at approximately $35 a month.

 

This is a single purpose bond and will be used only to build a new elementary school, not cover salary increases or operating costs. The total payback has been estimated at $45 million. 

 

LPSD was able to lower the construction costs due to the extended timeline for construction. If the bond passes, Bear Creek Elementary School will then be converted back to its original function, as a middle school, using district reserve funds. The construction timeline would follow a more traditional plan, enabling the restoration of Creekside Middle School in 2021 as the new elementary school would be ready for students at the same time. 

 

This year's bond language will be clear, and not use language such as "to include but not limited to."

 

Although conventional wisdom suggests that there are several reasons not to pursue a bond this year, the real issues say otherwise. The timing of this year's bond proposal could be considered inappropriate due to the superintendent retiring and open board seats on the same November ballot. The fact that LPSD has to add portable classrooms at the existing middle school, and some of our elementary schools, is the main reason behind putting the bond on the ballot this November. The current LPSD administration is also positioned to support the Board of Education in conducting a successful 2019 bond initiative. The board is unified around this bond proposal.

 

LPSD 38 Comparison of Existing Bond Debt with proposed 2020 Bond

 

Bond Series                Bond Term                 Interest                          Principal                 Total Payback

 

Series 2000 Bonds                 26 years                        $22.1 million                           $22.9 million                   $45.0 million
                                                                                          49.1%                                      50.9%                              100%

Series 2007 Bonds                 23 years                        $45.4 million                           $57.8 million                   $103.2 million
                                                                                          44.0%                                      56.0%                              100%

Series 2020 Bonds                 15 years                        $16.2 million                          $29.0 million                    $45.2 million
                                                                                          35.9%                                      64.1%                              100%

 

$28.985 million is the actual amount which will appear on the 2019 ballot initiative for LPSD. 

 

Estimated 2020 Tax Bill Calculations

 

 

Cost Neutral

How

 Cost neutral bond