The more I think about the recent comments from the school district’s bond counsel about the $110 million in interest ‘scare tactic’, the more it just doesn’t add up.
On one hand they say you will pay $2 a month for $185K home valuation for the life of the loan (25 years at 4%) but on the other hand they say the $110 in interest isn’t fair because they will ‘pay it off early’.
You can’t have both!
If the loan goes the full 25 years, the $2 a month is true, and also is the $110 million in interest. If they pay it off early, they only have one way to do that, change the tax levee to bring in more money. This is the ONLY way they would pay the loan off early is if they increase taxes, which would change the $2 a month argument.
Let’s face it, this is a ‘bait and switch’. They know they will have to try to pay off these bonds ASAP so they can borrow more down the road, and the only way they will be able to do that is increasing our property taxes.
So please tell us, is it $2 a month for 25 years or early payoff for tax increases later? Still waiting for the school district to apply transparency to this process not just talk about it.