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Tuesday, October 02, 2012

Nostalgia: 9/2005: Mr. Connors writes "On Backloaded Bonds"

-- billconnors wrote: --------------------------------- Managing growth is essential. But it would not be prudent to constrain growth too much. The school district's debt service for 2005-06 is $1.98 million. In 2014-15, the school district's debt service will exceed $3 million, even if no additional debt is issued between now and then. In 2020-21, the last year of payment on the bonds for the new high school, the school district's debt service will exceed $4 million. The school district heavily back-loaded the repayment schedule on the bonds for the new high school, which means they are counting on large increases in the school district's property tax base through new construction to be able to pay for the escalating debt service costs. This appears to be prudent financial planning on the part of the school district, but I wonder how many people are aware that continued growth is essential to keeping the school district's mill rate in line. Of course, we could get away with fewer new houses in the school district if we had more commercial or industrial development or a greater proportion of the new houses were larger and more expansive, and fewer new houses would save on operating costs for the school district. Bill Connors Evansville City Administrator

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