Voters to decide Aug. 3 whether to allow Saline school district to extend bond, add to debt
Editor's note: This story has been updated to correct a reference to taxable value. Voters in the Saline Area Schools district will decide Aug. 3 whether the district can extend the length of its current bond and add $28 million in new debt for buses, infrastructure, technology and security upgrades.
The new bond proposal would extend the length of repayment of the current $124 million bond by six years. Homeowners in the Saline school district are paying taxes on the current bond from 2000 until 2025; this year’s proposal would extend the repayment period until 2031.
Teacher David Fiske works with students at Woodland Meadows School in Saline. The district wants voters' approval to extend a bond and add new debt for technology and infrastructure upgrades.
File photo
The additional $18 million in new loans in the proposal would cost the district $12 million in interest. The money must be used for things like infrastructure repairs, busing, security and technology. Bond money cannot be used to pay for school employees’ salaries or benefits.
The district is trying to pass the bond now because low interest federal loans are provided until Sept. 30 this year under the stimulus package. Putting the bond issue on the Aug. 3 ballot also eliminates the need to pay for a special election.
Taxpayers pay 7 mills for the current bond. The rate would not change if the proposal passes. This means that a homeowner with a home with a market value of $200,000 and a taxable value of $100,000 would pay $700 in taxes for the bond.
At the meeting, several residents expressed concern over how long the $28 million would last the district, the long length of repayment, and how quickly the money needs to be spent.
Tom Wall, Assistant Superintendent for Administrative Services, said that the state has many requirements for how bond money can be spent, one of which is spending most of the money within three years. The district would plan to spend most of it in that period, he said.
Superintendent Scot Graden and Wall also said that issuing shorter term and more frequent bonds with a lower millage rate would result in much higher costs.
Comments
Persius
Tue, Aug 3, 2010 : 5:47 p.m.
Hey Saline Mom. Here's what you, and many people who have made similar comments as you do above, keep refusing to get. We who are against this are, at least in part, voting "no" as a rebuke to the unions. We're saying, no new funds to the education complex until they, the unions, come to heel and make real concessions. Teachers paying 3% into their own pension is NOT a concession. Pay cuts are concessions. Wage freezes are concessions. Having to contribute toward their healthcare premium is a concession. Having a copay is a concession. And they don't do ANY of it. We're sick of the status quo. Get it? I voted "no." When concessions are made, we can talk. That's just part of the story. The rest of the story JWB pretty much covers, but I will flavorize. Why are we borrowing from the future to pay for the present, hmmm? Don't you suppose that many of the things these people want to blow these millions on now will need replaceing and refurbishment 5 or 10 years from now? Problem will be, we will be paying for the past at that point, and the needs of that day will either have to go unfulfilled or new taxes will have to be levied. If we get the unions to make concessions that save us millions TODAY, then I will vote that we have a commensurate bond issue to pay for facilities TODAY. GET IT?
GunwallsArchibald
Tue, Aug 3, 2010 : 3:10 p.m.
Well put JWB. This is borderline fraud/scam. The infrastructure and maintenance repairs WILL be done regardless of the outcome of this proposal. This bond proposal doesn't decide whether, or not, repairs are done nor does it prevent the district from upgrading/investing in busing or changing any policies related to security. This bond proposal is an excuse to avoid the much needed cut to entitlement programs and the need to have union members start paying for their benefits. There is absolutely no reason for unions to not contribute to their benefits like the rest of us. ie I work for a healthcare provider and I pay almost $5k a year for my healthcare benefits!!! Pension? What pension? I have to save for my own retirement! Don't be taken for a fool and vote no to put an end to these rediculas entitlements and force bureaucrats to due what needs to be done--take an overdue cut in pay and start contributing to their own benefits!!! Free lunch is over MEA!
JWB
Thu, Jul 29, 2010 : 3:41 a.m.
The problem with the bond issue is that we the taxpayers will be using long term funding dollars for technology and maintenance repairs. These items will have to be replaced or repaired again years before we even start to pay on the first purchases and repairs. The maintenance items should be paid out of the operating budget. The problem with the student and bus drop off enhancements has more to do with the times students are allowed to be dropped off at school. This is a policy issue not a safety issue.
SalineMom
Tue, Jul 27, 2010 : 6:36 a.m.
@stunhsif You might want to get the attention of Tim Heim and the SEA - they are the ones who will not re-open their contract, because they claim the MEA won't let them. This bond issue has nothing to do with salaries, etc, but everything to do with an improved infrastructure, technology, etc. Saving 7 million dollars in interest is not a good thing? Since the previous bonds were re-financed to lessen the length on payback, I'll bet eventually these will be also. The 3 voters in my household will be voting YES.
stunhsif
Sun, Jul 25, 2010 : 2:16 p.m.
My wife and I will be voting no. Since the school board has been unable to get the union to discuss concessions for the teachers, this is the only thing we can do to get their attention.