How will this project be paid for?
A project of this type and size will be paid for through the selling of bonds. Our process is very similar to a homeowner who refinances a current mortgage to make an addition to their home. The Board of Education has authorized a question to be placed on the ballot that will authorize the sale of bonds for the project.
- Anticipated Cost of the Project: $8,315,000
- Assumed growth in the property value of the school district: 1%
- Assumed interest rate for projected cost: 3.75%
- Refinance $2.73 million in current debt
- Extend the current term by 15 years
With those factors considered, our current Bond and Interest Rate of $0.9116 is expected to be reduced to $0.8131.