Bond issue with no tax increase?

Bond issue with no tax increase?

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Worried

Belzoni, MS

#1 May 16, 2013
If the old bond issue is ended last year those mills should drop off of our taxes? Correct? So how can there be no increase if you are adding those mills back on? Also the school board will automatically get a 4% increase next year out of the county budget which they intend to get. This will cause the board of supervisors to increase taxes again. Add this to what our taxes will be raised because of the jail closing. I am all for helping the schools but what do we do when we can't afford to pay our taxes? Do we just keep piling it on until we all collapse? I guess that is the new American way. Somebody has to pay it because everyone wants the best of everything. I guess you take from the hard working people that have something so all can benefit. What happens when everyone is broke? I guess we will see!
Ironman

Tchula, MS

#2 May 16, 2013
Here is some information I found on the internet from a school district in Katy, Texas. Some of the questions answered for them are very similar to questions being asked by us. Hope these will help. I'll have to make 2 posts (too long)

What are bonds? How long does it take to pay them off?
Bonds for school projects are very similar to a mortgage on a home. To finance construction projects, the district sells bonds to investors who will be paid principal and interest. Payout is limited by law to 40 years.
How do bonds work?
The sale of bonds begins with an election to authorize a specific amount – the maximum the district is allowed to sell without another election. The school district sells them as municipal bonds when funds are needed for capital projects – usually once or twice a year. Bids are taken from interested buyers, usually large institutional investors – and are sold at the lowest interest rate offered. The rate is based on the district’s bond rating – the higher the bond rating, the lower the interest rate to sell the bonds. Principal and interest on the bonds are repaid over an extended period of time with funds from the Debt Service tax rate.
How can bond money be used?
Proceeds from a bond issue can be used for the construction and renovation of facilities, the acquisition of land and the purchase of capital items such as equipment.
What, other than bricks-and-mortar, is typically included in a facility referendum?
A referendum may include money for technology, buses, land for future schools, portable buildings and the cost of selling bonds.
Why are bonds used to finance non-facility items?
It is a financial advantage to the district to pay for some capital expenditures such as technology, buses, land and portable buildings with bond money rather than from the General Fund. First, the cost of the purchases can be spread over the life of the asset rather than coming from a single year’s General Fund. In addition, taxes that are levied for bonded debt are not subject to the same recapture formulas that reduce state funding based on General Fund tax revenues.
The district sells bonds that mature at different times, so bond expenditures for items with a shorter lifespan – such as computers – are paid off before the purchase becomes obsolete.
What is a bond election?
A school bond election gives individuals an opportunity to vote on paying for the construction and renovation of school facilities. It is a request to give the elected Board of Trustees the authority to sell bonds when facilities are needed.
Ironman

Tchula, MS

#3 May 16, 2013
What is the difference between a bond authorization and bond sales?
A bond authorization specifies the amount of bonds the District is authorized by the voters to sell. Bond sales may occur over a period of time with the date and amount of each sale determined by the Board on an as needed basis.
If the bond election is passed, does the school district immediately incur the debt?
The bonds do not cost the district anything until they are sold. Even though the voters approve the bond issue, there are not costs incurred until the bonds are sold.
If the bonds are approved, is the district obligated to spend the money?
No. Voter approval is an authorization for the district to issue bonds. They will be sold in the future only when funds are needed.
Will Katy ISD be able to sell its bonds at a favorable rate?
Katy ISD’s bonds should receive the highest possible rating due primarily to the guarantee by the Texas Permanent School fund. Because of the high rating and the current low interest rates, the District expects a favorable market for its bonds.
Katy ISD’s bond ratings put Katy in the top tier of Texas’ most credit-worthy school districts.
Paying for Schools
A school district’s tax rate consists of two parts: 1) Maintenance and Operations (M&O) and 2) Debt Service (I&S). Maintenance and operations taxes fund the General Operating Fund: salaries, supplies, utilities, insurance, equipment and the other costs of day-to-day operations.
The Debt Service tax pays off school bonds, again somewhat like paying off the mortgage on a house.
What is the difference between the M&O and the Debt Service tax rates?
M&O taxes are used for day-to-day operations – salaries, supplies, utilities, insurance, fuel, etc. Revenue from the Debt Service tax rate can only be used to retire bonds sold for specific purposes: construction, renovations, buses, portable buildings, land, technology and the cost of issuing bonds.
How will this facility referendum affect homeowners who are over 65?
School district taxes on resident homesteads are frozen in the year the taxpayer turns 65 year of age and will not increase as a result of a school bond election.
Ironman

Tchula, MS

#4 May 16, 2013
What are bonds? How long does it take to pay them off?
Bonds for school projects are very similar to a mortgage on a home. To finance construction projects, the district sells bonds to investors who will be paid principal and interest. Payout is limited by law to 40 years.
How do bonds work?
The sale of bonds begins with an election to authorize a specific amount – the maximum the district is allowed to sell without another election. The school district sells them as municipal bonds when funds are needed for capital projects – usually once or twice a year. Bids are taken from interested buyers, usually large institutional investors – and are sold at the lowest interest rate offered. The rate is based on the district’s bond rating – the higher the bond rating, the lower the interest rate to sell the bonds. Principal and interest on the bonds are repaid over an extended period of time with funds from the Debt Service tax rate.
How can bond money be used?
Proceeds from a bond issue can be used for the construction and renovation of facilities, the acquisition of land and the purchase of capital items such as equipment.
What, other than bricks-and-mortar, is typically included in a facility referendum?
A referendum may include money for technology, buses, land for future schools, portable buildings and the cost of selling bonds.
Why are bonds used to finance non-facility items?
It is a financial advantage to the district to pay for some capital expenditures such as technology, buses, land and portable buildings with bond money rather than from the General Fund. First, the cost of the purchases can be spread over the life of the asset rather than coming from a single year’s General Fund. In addition, taxes that are levied for bonded debt are not subject to the same recapture formulas that reduce state funding based on General Fund tax revenues.
The district sells bonds that mature at different times, so bond expenditures for items with a shorter lifespan – such as computers – are paid off before the purchase becomes obsolete.
What is a bond election?
A school bond election gives individuals an opportunity to vote on paying for the construction and renovation of school facilities. It is a request to give the elected Board of Trustees the authority to sell bonds when facilities are needed.

I found this info. on the net from a Katy, Texas school district. Some questions were very similar to the ones we have. Hope this info. helped.
Ironman

Tchula, MS

#5 May 16, 2013
OOPS. Sorry for the double post.

Since: Nov 10

Location hidden

#6 May 16, 2013
Ironman, - plain and simple a bond is a 20 year debt on the property owners. You must be connected to the school system. We will borrow 7 million and pay back 8 - 8 1/2 million dollars because we gotta have it now. I completely understand a bond and our school system has about 3 on the books right now. I looked at the 2012 State audit - we owe close to 900,000 dollars due this year on these bonds. It appears from the audit that the system is sound. I feel like we have been duped and I just don't like it.

Since: Nov 10

Location hidden

#8 May 16, 2013
Worried wrote:
If the old bond issue is ended last year those mills should drop off of our taxes? Correct? So how can there be no increase if you are adding those mills back on? Also the school board will automatically get a 4% increase next year out of the county budget which they intend to get. This will cause the board of supervisors to increase taxes again. Add this to what our taxes will be raised because of the jail closing. I am all for helping the schools but what do we do when we can't afford to pay our taxes? Do we just keep piling it on until we all collapse? I guess that is the new American way. Somebody has to pay it because everyone wants the best of everything. I guess you take from the hard working people that have something so all can benefit. What happens when everyone is broke? I guess we will see!
That is just the way some live these days. I do not believe it will pass from all I hear from various people.
Ironman

Tchula, MS

#9 May 16, 2013
Tgr22-What is your complaint? Students having to pass state tests to be able to graduate?

Since: Nov 10

Location hidden

#10 May 16, 2013
Don't know who you are referring to Ironman, but a loan is a loan. My complaint is wanting to lower grading scores, but acting like we can teach on a higher level, wasting money and I think just trying to fool the voters. Washington has soaked us all so bad, think we are going to wise up. I have a question, are we going to hire new teachers to teach to a level two grades higher than now? If we are not getting new teaches, then why haven't they already been doing this. Are you connected to the schools?
Tired

Hattiesburg, MS

#11 May 16, 2013
In ref to tgr22- so is life, If you don't make the grade, you fail regardless of the situation. What victims we have become.
Maroon09

Hattiesburg, MS

#12 May 16, 2013
cipsaw wrote:
Don't know who you are referring to Ironman, but a loan is a loan. My complaint is wanting to lower grading scores, but acting like we can teach on a higher level, wasting money and I think just trying to fool the voters. Washington has soaked us all so bad, think we are going to wise up. I have a question, are we going to hire new teachers to teach to a level two grades higher than now? If we are not getting new teaches, then why haven't they already been doing this. Are you connected to the schools?
What does matter if ironman is connected to the school? Almost all who live in George County are connected to the schools (children, grandchildren, nieces, nephews, etc.). All should want better. The grading scale is going to be like most colleges, and school districts around us. We have some great teachers and some not so great just like any other place in America, but that can be said for any occupation. This vote would certainly pass if it was for anything dealing with athletics. And I like sports so I am not downing our athletics before anyone tries to go that way.
Ironman

Tchula, MS

#13 May 16, 2013
We both know what a loan is. Concerning the current issue, I would just rather get a loan now with much lower rates than one later with much higher rates. It would save money in the long run.

Concerning the change in the grade scale...honestly, I haven't done too much research on that topic. But, there are different schools all around the state and south MS that have specific grade scales. Research has been done to try and help with dropout rates. That data included the slight change in the grade scale as being beneficial. And, it won't drop 10 points like some say. A passing grade only drops 5 points, with an A-C on the 10 point scale. I'm sure some students will still shoot for the minimum, unfortunately. But, it could give those that truly struggle a little more incentive (maybe). Hey, at least they're trying.

And, Cipsaw...I, too, appreciate the information presented by you and the respectful way you share your ideas, even though we might not see eye to eye on some things. We should go to Washington and get things done! HA!

Since: Nov 10

Location hidden

#14 May 16, 2013
Maroon09 wrote:
<quoted text>
What does matter if ironman is connected to the school? Almost all who live in George County are connected to the schools (children, grandchildren, nieces, nephews, etc.). All should want better. The grading scale is going to be like most colleges, and school districts around us. We have some great teachers and some not so great just like any other place in America, but that can be said for any occupation. This vote would certainly pass if it was for anything dealing with athletics. And I like sports so I am not downing our athletics before anyone tries to go that way.
Well I had asked Ironman that question. I agree that sports are so over rated in this county. Academics come in some where around last - I had much rather have an academic scholarship than sports or cheerleading. We need to weed out the bad teachers too.
Maroon09

Hattiesburg, MS

#15 May 16, 2013
cipsaw wrote:
<quoted text>
Well I had asked Ironman that question. I agree that sports are so over rated in this county. Academics come in some where around last - I had much rather have an academic scholarship than sports or cheerleading. We need to weed out the bad teachers too.
Sports are not the problem, sports put my husband through college, then academics did. I want my children to play sports it teaches them not everyone wins, and sometimes the best lose. I was saying most complaining now would be backing something new for sports.

Since: Nov 10

Location hidden

#16 May 16, 2013
Maroon09 wrote:
<quoted text>
Sports are not the problem, sports put my husband through college, then academics did. I want my children to play sports it teaches them not everyone wins, and sometimes the best lose. I was saying most complaining now would be backing something new for sports.
I like what you said too, all can't win. All children are not equal in any respect and we are spinning our wheels trying to achieve that goal. I asked my family if people are dumber now than a few years ago, we did not have all the special needs or have to lower scores. I am not making that statement in a mean way either. I just can't understand it - there is not really a spot for the genius kid or above average, they just have to sit and be bored. The child that is not mentally capable of finishing school will probably not be able to hold a job either. I think we could better direct our money and time to average or above children. Please don't take this statement as a put down to any group of children either. I feel very sorry for any parent or any child that has a learning difficulty.

Since: Apr 09

Location hidden

#17 May 16, 2013
Tired wrote:
In ref to tgr22- so is life, If you don't make the grade, you fail regardless of the situation. What victims we have become.
" We" have not become victims, our children have, the girl in the mentioned article had a high G.P.A. and is denied the right to graduate because of what they admitted was a harder test than previous tests, You can not throw harder curriculum at students and expect them to excell in one or 2 years. The seniors of today should not have to pass these " harder" tests to graduate. This is completely unacceptable. In George County,There are several 16 year olds in middle school and " 5 or 6, 17 year olds in the 9'th grade". Unacceptable and I'm sure a product of the Federal No child left behind act. Just like the new Common Core being the factor behind these children's inability to graduate. Several states are re evaluating and opting out of the common core crap, I strongly suggest Mississippi do the same thing and get back to teaching and if anything, Follow Finlands academic ways but don't slap it on the children all at once. When children's futures are at risk, IT'S TIME TO TAKE APPROPRIATE ACTION and implementing programs just to receive Federal funding is not the answer. There sure have been quite a few programs implemented to get that funding but we still have over weight children, We now have children being deprived their earned right to graduate. I understand that budget cuts have been made but turning to the Federal government and being made to implement programs is NOT the answer. How about it Supervisors, DROP common core, lose the funding and go back to good old fashioned teaching. There are millions of doctors, lawyers, etc. Who made it through School and went on to be successfull. That one child not being able to graduate rose my blood pressure about 100 points.By the way, Alabama happens to be one of the States debating on dropping Common Core.

Since: Apr 09

Location hidden

#18 May 16, 2013
OH, By the way, Lowering the grading scale IS NOT AN OPTION!!!!!!!!!!

Since: Aug 11

Location hidden

#19 May 16, 2013
mentul_autocrat wrote:
<quoted text>" We" have not become victims, our children have, the girl in the mentioned article had a high G.P.A. and is denied the right to graduate because of what they admitted was a harder test than previous tests, You can not throw harder curriculum at students and expect them to excell in one or 2 years. The seniors of today should not have to pass these " harder" tests to graduate. This is completely unacceptable. In George County,There are several 16 year olds in middle school and " 5 or 6, 17 year olds in the 9'th grade". Unacceptable and I'm sure a product of the Federal No child left behind act. Just like the new Common Core being the factor behind these children's inability to graduate. Several states are re evaluating and opting out of the common core crap, I strongly suggest Mississippi do the same thing and get back to teaching and if anything, Follow Finlands academic ways but don't slap it on the children all at once. When children's futures are at risk, IT'S TIME TO TAKE APPROPRIATE ACTION and implementing programs just to receive Federal funding is not the answer. There sure have been quite a few programs implemented to get that funding but we still have over weight children, We now have children being deprived their earned right to graduate. I understand that budget cuts have been made but turning to the Federal government and being made to implement programs is NOT the answer. How about it Supervisors, DROP common core, lose the funding and go back to good old fashioned teaching. There are millions of doctors, lawyers, etc. Who made it through School and went on to be successfull. That one child not being able to graduate rose my blood pressure about 100 points.By the way, Alabama happens to be one of the States debating on dropping Common Core.
Hey Mentul, I agree with you to a certain point, but my question here would be have you seen the test that these students are failing? I would like to see this test and judge the difficulty and if getting back to "good teaching" is your answer to this problem, then why would these children fail in the first place, is the good teaching not present in these schools now? Just trying to follow your train of thought.

Since: Apr 09

Location hidden

#20 May 16, 2013
just -woderin wrote:
<quoted text>
Hey Mentul, I agree with you to a certain point, but my question here would be have you seen the test that these students are failing? I would like to see this test and judge the difficulty and if getting back to "good teaching" is your answer to this problem, then why would these children fail in the first place, is the good teaching not present in these schools now? Just trying to follow your train of thought.
I have not seen the tests but it plainly states that the test was harder than any previous test given. I too would love to see the test and yes Sir, Getting back to good teaching is part of it.I believe the seniors this year should be given the same test that was given last year. Give the students a chance to adapt.

Since: Aug 11

Location hidden

#21 May 16, 2013
Ironman wrote:
What are bonds? How long does it take to pay them off?
Bonds for school projects are very similar to a mortgage on a home. To finance construction projects, the district sells bonds to investors who will be paid principal and interest. Payout is limited by law to 40 years.
How do bonds work?
The sale of bonds begins with an election to authorize a specific amount – the maximum the district is allowed to sell without another election. The school district sells them as municipal bonds when funds are needed for capital projects – usually once or twice a year. Bids are taken from interested buyers, usually large institutional investors – and are sold at the lowest interest rate offered. The rate is based on the district’s bond rating – the higher the bond rating, the lower the interest rate to sell the bonds. Principal and interest on the bonds are repaid over an extended period of time with funds from the Debt Service tax rate.
How can bond money be used?
Proceeds from a bond issue can be used for the construction and renovation of facilities, the acquisition of land and the purchase of capital items such as equipment.
What, other than bricks-and-mortar, is typically included in a facility referendum?
A referendum may include money for technology, buses, land for future schools, portable buildings and the cost of selling bonds.
Why are bonds used to finance non-facility items?
It is a financial advantage to the district to pay for some capital expenditures such as technology, buses, land and portable buildings with bond money rather than from the General Fund. First, the cost of the purchases can be spread over the life of the asset rather than coming from a single year’s General Fund. In addition, taxes that are levied for bonded debt are not subject to the same recapture formulas that reduce state funding based on General Fund tax revenues.
The district sells bonds that mature at different times, so bond expenditures for items with a shorter lifespan – such as computers – are paid off before the purchase becomes obsolete.
What is a bond election?
A school bond election gives individuals an opportunity to vote on paying for the construction and renovation of school facilities. It is a request to give the elected Board of Trustees the authority to sell bonds when facilities are needed.
I found this info. on the net from a Katy, Texas school district. Some questions were very similar to the ones we have. Hope this info. helped.
That was a very good lesson on Bonds, but it seems the advantages of getting these bonds seem to be based from the opinion of school administrations point of view. Most people that know about MORTGAGES have a pretty good idea what a bond is. I do have a question for you though. The present bond that is being paid off is a $20 million dollar bond, that was financed 20 years ago, when undoubtedly had a higher interest rate than what could be obtained today. The new bond is for $7 million dollars, which I am pretty sure should have a lower interest rate. Now my problem, if this bond is going to be spread out over 20 years also, then why wouldn't our taxes go down the remainder of the $13 million dollars that is not being asked for.The Big appeal that the district is advertising "is no tax hike, taxes will not go up", but why aren't they going to go down even if this is approved.

$20,000,000 bond
$7,000,000 bond
$13,000,000 left over that should be applied to lowering taxes, right?

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