School districts need to keep borrowing so that they can spend today and tax tomorrow. They think as long as they are not raising taxes much, we won’t notice. But, we are paying attention. When we approved the last referendums (Hubble, high schools…) those were to be paid off in 20 years – like a mortgage. Instead, the school board has refinanced bonds to lower current payments and push the all-paid date out. Then they borrow more – new, non-referendum bonds. It is now more like a home equity line of credit that will never be paid off, so taxes will never go down. Currently about 9% of our property tax bill pays for past school district borrowing. If we STOP future bond issues our taxes will go down!
Vote “NO.” Pay attention, don’t let them use your home equity to finance their spending.
From p7 of a PMA presentation to the District 200 board on May 9, 2018:
Read that second line carefully. They are restructuring bonds to create head-room for more borrowing that they hope no one will notice. The 2018 restructuring has now been done. The 2019 must be done, because it is the part that extends the debt. Currently the repayment schedule peaks even higher!
The “CUSD 200, Financing Options for Refinancing/Restructuring” presentation was given on May 9, 2018, by Robert E. Lewis III, of PMA Securities, Inc. See it: 2018_5_9 bond refinancing PMA
There is a finance meeting tomorrow, Nov. 6 at 3:30 pm at the school service center. It is open to the public.