After thinking about the figures given at the last invited stakeholders meeting concerning the School District’s bond measure in January, here is my conclusion: The numbers for paying the $7M annual payment in a 15-year parcel tax seem even more appealing than the annual payments of the School Board's proposed 30-year $106M bond.
Savvy Consumers
Most of us would agree how the average consumer would reply to the question, “Would you rather pay $217 or $105 for the same item?” Easy call.
New Figures, New Ideas
By using the consultant KeyGent's own figures on the total amount that the average homeowner would pay over the life of a 30-year bond, $7,169, and comparing that to the larger amount of $8,254 that the average parcel owner would pay for a 15- year parcel tax, the difference is $1,085.
Doing the Math
If we divide the $1,085 cost to the average homeowner of a $105M parcel tax by 180 months (15 years), it comes to an additional monthly cost of $6.02. Divide the $106M bond's interest payments of $112M by its 360-month payment period and we will be paying over $310,000 in monthly interest.
Common Sense Conclusion
The question becomes, “Will the homeowner be willing to spend $6.02 more a month i to save over $310,000 a month in bond interest?” Again, the answer is obvious. The savings is $50,000 to one.
Simply Put
Is the cost of having the average homeowner only paying an additional $6.02 a month for 15 years worth saving our community the $310,000 in interest every month over what a 30-year $106M bond would cost us?
Maybe we, as a community, should rethink the School Board's proposed 30-year, $106M bond and start looking at passing a $105M parcel tax instead.
Mr. Laase may be contacted at GMLaase@aol.com
