Tea8 Loc: Where the wind comes sweeping down the plain.

Is there anyone here who understands legal speak, so to speak? My school district is having a vote on a school bond here in a couple of weeks and based on what I understand of the wording for the proposed bond issue versus what they are telling us on social media platforms about it things doesn’t necessarily match up to me. I want to be an informed voter on this and make sure that we are getting the truth. So if anyone can help me just reply and let me know and I will post the wording we have on our sample ballots. Thanks!!

lesdmd Loc: Middleton Wi via N.Y.C. & Cleveland

There should be an open community meeting that allows for questions. Plan on attending.

jerryc41 Loc: Catskill Mts of NY

If you post both versions, many of the experts here will weigh in and offer ideas. One thing I can say for sure: the only thing that matters is the wording on the ballot. It's like buying a car. The salesman will tell you one thing, but the contract you sign will say another. Guess which one really matters.

jaymatt Loc: Alexandria, Indiana

Most ballots such as the one you refer to are worded so that you will vote the way the writer intended you to. Study the actual wording very carefully.

Tea8 Loc: Where the wind comes sweeping down the plain.

I work until 7 pm in a city that’s almost an hour from where I live. So unfortunately that makes most meeting unable for me to attend.

Hal81 Loc: Bucks County, Pa.

People with no kids in school don't seem to care about those meetings, that is till their taxs go up.

Tea8 Loc: Where the wind comes sweeping down the plain.

So, the proposal on the Sample Ballot reads...

Shall Independent School District... incur an indebtedness by issuing its bonds in the sum of Nineteen Million Nine Hundred Ninety Five Thousand Dollars (19,995,000) to be issued in one or more series to provide funds for the purpose of constructing, equipping, repairing, and remodeling school buildings, acquiring school furniture, fixtures and equipment and acquiring and improving school sites, and levy and collect and annual tax, in addition to all other taxes, upon all the taxable property in such District sufficient to pay the interest on such bonds as it falls due and also to constitute a sinking fund for the payment of the principal thereof when due, said bonds to bear interest not to exceed the rate of ten (10) percent annum, payable semi-annually and to become due serially within ten (10) years from their date?

Really it's this last bit that I need some help understanding. So we pay the amount they are taxing at first until the interest is paid off, which will be no more than 10% of what the bond was originally for, and then as the principal becomes less to pay that means less they will tax us?

And then really the last bit, "payable semi-annually and to become due serially within 10 years from their date." Does this mean that they plan to have everything including the principal and the interest and all of that paid off within 10 years? Or does it mean something like it could be paid off at any time within the next 10 years?

Here is a line from their public statement on this bond issue, "Phase 1 will be voted on by our patrons May 14, 2019 and consist of the following (with an estimated 18-24 months timeline for completion)" One one of the social media sites they posted a statement similar to this one that was phrased more like, "This bond will be completed within 18-24 months," and that wording makes it sound like that means they are going to collect enough taxes in that amount of time to pay off the bond which I know isn't feasible. Especially considering we won't even be voting on phase 2 until 8-9 years from now if this one passes. They are also touting the fact that phase 2 won't mean a tax increase; they're just forgetting to mention that our taxes won't down either (we'll just keep paying $9 a month per $100,000 of property: which adds up to over $100 increase per year on most of the homes here).

So, if anyone out there understand the legal speak at the end there and can help explain it to me I would be ever so grateful. I value education, but I also value my community as a whole and I would hate to vote for something that looks good on paper, but could ultimately be detrimental to what we have.

edwdickinson Loc: Ardmore PA

It's government. twist it, turn it and spin it as fast as possible so you can't tell what it is and they will tell you what you want to hear. Don't trust them.

2Dragons Loc: The Back of Beyond

When in doubt, vote "No".

gvarner Loc: Central Oregon Coast

You say that you value education. Do you value it enough to pay the additional tax? That’s pretty much where I’d be on the analysis.

happy sailor Loc: Ontario, Canada

[quote=Tea8]So, the proposal on the Sample Ballot reads...

Shall Independent School District... incur an indebtedness by issuing its bonds in the sum of Nineteen Million Nine Hundred Ninety Five Thousand Dollars (19,995,000) to be issued in one or more series to provide funds for the purpose of constructing, equipping, repairing, and remodeling school buildings, acquiring school furniture, fixtures and equipment and acquiring and improving school sites, and levy and collect and annual tax, in addition to all other taxes, upon all the taxable property in such District sufficient to pay the interest on such bonds as it falls due and also to constitute a sinking fund for the payment of the principal thereof when due, said bonds to bear interest not to exceed the rate of ten (10) percent annum, payable semi-annually and to become due serially within ten (10) years from their date?

Really it's this last bit that I need some help understanding. So we pay the amount they are taxing at first until the interest is paid off, which will be no more than 10% of what the bond was originally for, and then as the principal becomes less to pay that means less they will tax us?

And then really the last bit, "payable semi-annually and to become due serially within 10 years from their date." Does this mean that they plan to have everything including the principal and the interest and all of that paid off within 10 years? Or does it mean something like it could be paid off at any time within the next 10 years? [end quote]

The interest is not 10% of the bond, it is 10% per annum (year) of the amount of the bond is outstanding. For example if the bond was $1,000,000 in the first year there would be two (semi annual) payments of $50,000 each and the same each year thereafter until the bond is cashed out. So if their intent is to not pay the bond for ten years then there would be a total of 10 years of $100,000 interest ($1,000,000) and the school board would have to then pay the principal amount of $1,000,000 at the end of the 10th year.

Think of when you bond Government Savings Bonds with a 10% interest rate, your bonds made that 10% each year from the government until you redeemed it and when redeemed the government paid you the amount you purchased and the interest. Same thing here for the school board except they plan on paying the interest each year so it doesn't compound over the ten years and then paying interest on interest.

pendennis

First, call the local/county/state bar association to find an attorney in the town/township which is being affected. A lot of time, they have attorneys on "speed dial" who will answer such questions pro bono.

This is legalese, as well as "financial-ese" in nature. There are also bankers who understand this language. Your local bank branch manager may even be able to help, if not personally, then refer you to someone in their bond department.

From my understanding working in city government eons ago, the term "sinking fund" is merely an engine for administering the bond payments.

Wuligal Loc: Slippery Rock, Pa.

The proposal reads: and levy and collect and annual tax, in addition to all other taxes, upon all the taxable property in such District sufficient to pay the interest on such bonds as it falls due and also to constitute a sinking fund for the payment of the principal thereof when due, said bonds to bear interest not to exceed the rate of ten (10) percent annum, payable semi-annually and to become due serially within ten (10) years from their date?

You might want to ask what the exact cost is of having to pay more taxes.
Here in Pennsylvania we pay an extra 2% to Berkheimer (sp) tax collection company located mid state and at the same time we continue to employ a local tax collector. How's that for a non brainer!
No matter how hard you try my friend you will never win but you can get even.......purchase one of the bonds at 10% per annum. You will have doubled your money in ten years and because it's an educational bond it's probably tax free.

Curmudgeon Loc: SE Arizona

Seems to me that they want to float a $20,000,000 bond issue to fund education, and increase property taxes an unspecified amount to fund the issue. Simple question for tax payers: Is local education important enough to you to pay increased property taxes to fund it.

Tex-s

Here in rural TX, because of our statewide convoluted 'Robin Hood' funding plan, many so-called 'wealthy districts' end up sending 80% or more of locally generated tax revenues to the state for redistribution. This woiuld be bad enough, but the state has a minimum taxation regulation, meaning local districts cannot lower the taxation on local payers to keep money in their own districts. THAT means that local 'rich' districts are having to pass bonds to pay for certain necessities, like HVAC replacement, landscape work to stop flood damage, or adding facilities to serve greater numbers of students. Some TX bonds have to be passed to keep small schools open in certain cases, as the funding system seems designed to burden smaller districts. I'm not saying your district has funding hurdles to clear, but it's a possibility that should be researched.