The statutory bonding limit of our community is estimated at $200M. This limit is calculated by multiplying our city’s approximately $8 billion assessed valuation (not market value) by the legislative debt limit of 2.5 percent, which is $200M.
The state Legislature has set a maximum limit of $60 per $100K maximum taxing limit for each bond election involving unified school districts. The average home in Culver City is assessed at about $350,000. This means an average homeowner’s tax bill could go up a maximum of only about $200 per bond measure during each election.
The Sky Is Not the Limit
These limitations maximize what the Culver City USD can raise in bond funding in its next election to only $105M. Yet there is said to be an estimated $165M in needed repairs to our schools. It looks as if our community will need to pass not just one but a series of bonds over the next few years if we are to fix all of our school facilities.
Since the borders of our city of Culver City and School district are congruent, this $200M is the total bonding available for both governing bodies. Of course, as our assessed valuation of our properties increases over the years, so would our community bonding limit.
A $33M Tab
The Culver City USD already has $33M in bond principle left outstanding from its 1996 $40M Measure T bond. The total taxpayer payments (principle and interest) though, come to about $54M.
Subtracting the $33M already on the District books, there is currently $167M still available in bonds for both of Culver City’s governments, if needed.
Right Hand, Left Hand
Coordination is needed between these two agencies so no one overborrows its fair share and leaves the other hanging out to dry, in not having enough in bonds available to do what it seeks.
If taxpayers approve too much in school bonds on fixing up our School District facilities and don’t leave enough to maintain our city’s infrastructure, or visa-versa, our property values will decline, either way. So there has to be a balance to our community’s limited borrowing.
With parents fixated on looking out for their own children’s education interests, shouldn't the School Board step back and see the broader picture for our whole community and make this a priority item for the next School Board/City Council Liaison Committee? With the limited amount of bond funding available to our community, it would be wise for both the right hand and the left hand to know what each is thinking and plan accordingly.
Mr. Laase may be contacted at GMLaase@aol.com
