The deed is done:
The School Board unanimously approved the sale of $38 million in working cash bonds on Monday, estimated to add some 21.7 cents to the tax rate. . . .
Much like the cost of a loan to purchase a home or car is much more than what is actually borrowed, the amortized cost to issue the $38 million bonds, essentially borrowing the cash, will cost taxpayers $60,461,887.
The $38 million goes into the district’s reserve fund and will hopefully mean that the district no longer has to issue tax anticipation warrants, which will preserve more money for the education fund. It’s unfortunate that it’s come to this, but there are few options left after several years of irresponsible spending by the school district. The real question is, will the school board stick to the plan and not deplete their reserves again?
Just doing “what is best for our children”; please just raise real estate taxes and cover the deficit and get it over with a new administration.
Good thing you guys are paying that ADDED sales tax for the new museum!
A great big boost to the local economy and all that education…all for only $140 million!
I am sure that a failing school district and a great big tax hike will make Peoria the garden spot of the midwest! Add the museum and you guys are set!
WOW! Good for you Peoria!!!!!!
I hope you won’t mind if we stay over here in Tazewell County.?.?.?
How about a new ninknames for some of our “leaders” like “World Class” Henry Hollings, the museum man of the hour?
Our administrator confirmed last week the museum fund raising is $10 million short plus endowment.
Merle!
You snotty bastard!
Excellent!
Merle: Gee, no kidding?
Does someone have to buy the bonds first? Who would take the risk? The school can’t pay 38 million, why would they be able to pay 60?
FROM: http://web.grinnell.edu/courses/mitc/vandergr/201%20Web%20site/Schools%20Bonds.htm
” First of all, as a voter in a district, you vote on every bond separately from every other question on the ballot.
Second, bonds are for specific money uses. For instance, Sunnyside District in Tucson passed a $5,000,000.00 bond a couple of years ago to put computers in all schools and connect them to the internet. That’s all that money can be used for. Bonds are usually only issued for capital needs — new equipment, new classroom and administration buildings, parking lots, football fields, swimming pools, etc. — but they can be issued for other purposes, such as teacher raises.
School bonds are like any other kinds of bonds: they are promissory notes. When Sunnyside issued the bonds mentioned above, they went through brokerage houses, which sell them to investors. So, in other words, bonds are a way of borrowing money. How much a district can borrow this way depends on two things. First, the legislature sets a limit, based on the assessed value of the taxable property in the district. This is usually something like 10%. So, if a district has, say, $100,000,000.00 in assessed property value, it could borrow up to $10,000,000.00. Second, the voters have to vote for the bonds on a popular ballot. If the majority of the voters in the district vote no, then the schools can’t issue the bonds.”
So… did we voters approve these bonds??? When?
kcdad — Illinois law doesn’t require a referendum to issue bonds over the statutory limit to pay claims under 105 ILCS 5/19?8 and 105 ILCS 5/19?9. However, the voters can force it to a referendum by petition of 10% of the voters in the school district. In District 150, that’s a little less than 7,000 voters. The voters only have 30 days to gather the necessary signatures. If they don’t, then the bonds can be issued. That’s what happened here.
You of all people should know that the legal system is not designed with the best interests of the voters/taxpayers/citizens in mind. 😉
Thanks for the info… you are Johnny on the spot