District 51 adds premium of $26M to bond
School
District 51 Board of Education members voted unanimously Tuesday to add
a $26 million premium to the $118.5 million bond measure that voters
approved this month to fund a new middle school, district-wide repairs
and technology upgrades.
District 51 Board of Education members voted unanimously Tuesday to add
a $26 million premium to the $118.5 million bond measure that voters
approved this month to fund a new middle school, district-wide repairs
and technology upgrades.
Chief Operations Officer Phil Onofrio told board members that market buyers would not accept a bond at face value.
"The
market will not accept non-premium bonds at this point, because
premiums give bond buyers protection against increases in interest
rates," Onofrio said.
market will not accept non-premium bonds at this point, because
premiums give bond buyers protection against increases in interest
rates," Onofrio said.
Onofrio said at minimum, the board must authorize $17 million in premiums in order to sell the bonds.
But
by issuing the maximum premium and in addition to accrued interest, it
would bring the bond total up to $150 million while still staying in the
parameters of the ballot language, Onofrio said.
by issuing the maximum premium and in addition to accrued interest, it
would bring the bond total up to $150 million while still staying in the
parameters of the ballot language, Onofrio said.
Board members also unanimously voted to use the additional $26 million to first pay off the debt on R-5 High School.
The
premium will impact property taxes by about $3 a year, Onofrio said,
bringing the average annual cost of both the bond measure and mill levy
override on a $200,000 home to $113. The school district initially
estimated both measures would cost the owner of a $200,000 home $118 per
year.
premium will impact property taxes by about $3 a year, Onofrio said,
bringing the average annual cost of both the bond measure and mill levy
override on a $200,000 home to $113. The school district initially
estimated both measures would cost the owner of a $200,000 home $118 per
year.
Board members said they wanted to include the community on how to spend any remaining bond money.
"I
think the hard work about this bond and mill is just starting and I
think we have to be very deliberate and very open about what we're going
to spend this money on and why," said Board President John Williams.
"We need to walk forward pretty deliberately and openly about what we're
doing if we don't want to have to wait 20 more years to build another
school."
think the hard work about this bond and mill is just starting and I
think we have to be very deliberate and very open about what we're going
to spend this money on and why," said Board President John Williams.
"We need to walk forward pretty deliberately and openly about what we're
doing if we don't want to have to wait 20 more years to build another
school."
Board member Tom
Parrish said the board must be concrete and deliberate about how it
spends any bond money above the items listed in the ballot measure.
Parrish said the board must be concrete and deliberate about how it
spends any bond money above the items listed in the ballot measure.
"I
think at some point because of the additional revenue that is coming
out of this we have to look to the community to ask what should we do
with it," Parrish said.
think at some point because of the additional revenue that is coming
out of this we have to look to the community to ask what should we do
with it," Parrish said.
Board
members brought up ideas including a new elementary school in Fruita,
all-day kindergarten and replacing Grand Junction High School.
members brought up ideas including a new elementary school in Fruita,
all-day kindergarten and replacing Grand Junction High School.
Board member Doug Levinson echoed the need to involve the community in any decisions on capital projects.
"Before
we do anything we're going to make sure we have buy-in from the
community," Levinson said after the meeting. "If we do anything that
compromises the trust people have put in us, we've screwed ourselves for
15 years and we can't do that. And I think everyone's pretty adamant
about that."
we do anything we're going to make sure we have buy-in from the
community," Levinson said after the meeting. "If we do anything that
compromises the trust people have put in us, we've screwed ourselves for
15 years and we can't do that. And I think everyone's pretty adamant
about that."
