1. School Bonds 101 What Are School Bonds?
Debt issued by a school district to finance improvement to or the construction of school facilities that is supported by a voted levy.

2. What Are School Bonds? Must be affirmatively approved by the voters

3. School Bonds 101 What Are School Bonds?
Can only be used for the purposes of constructing, renovating, remodeling, rehabilitating, adding to, furnishing, equipping and otherwise improving buildings and facilities, and preparing, equipping and otherwise improving real estate

4. School Bonds 101 What Are School Bonds?
By law, it CANNOT be used for salaries and benefits
By law, it must be accounted for in separate funds
002 repay bond debt (principal & interest)
004 construction and/or renovation costs

5. School Bonds 101 What is a Bond Levy?
A property tax that is approved by a majority of voters to repay school issued debt for the construction and or renovation of school facilities

6. School Bonds 101 How is a Bond Levy Calculated?
A District needs to know four items.
1. Total Value of All Property
2. Estimated Interest Rate
3. Maturity
4. Size of Bond Issue
3.99 Mills

7. School Bonds 101 How is a Bond Levy Calculated?
1. Total Value of All Property
Otherwise know as Assessed Valuation (AV)
This information is provided and certified by the Lake County Auditor (LCA)
LCA certified an AV of $1,500,229,300

8. School Bonds 101 How is a Bond Levy Calculated?
2. Estimated Interest Rate
Helped determined by outside counsel
District worked with an investment bank, Piper Jaffray, and legal counsel at Squire Patton Boggs to determine the 4.50% rate

9. School Bonds 101 How is a Bond Levy Calculated? 3. Maturity
Determined by law → §133.20
Information gathered from Architects who provide general scope of project to legal counsel to determine the maturity

10. School Bonds 101 How is a Bond Levy Calculated? 4. Size of Bond Issue
Limited to 9% of AV or $135,000,000
District Committees gave input as to size and what could be addressed within 3.99 mills
3.99 mills yielded a $115.75M bond issue size

11. School Bonds 101 If Approved, What Will the Bonds Pay For?
New North High School
New South High School
New Longfellow Elementary
All 3 new buildings will be constructed on existing, respective sites

12. School Bonds 101 If Approved, What Will the Bonds Pay For?
Renovations throughout remainder of District; roofs, windows, doors, HVAC
Willoughby Middle Moves to Current South
Old North, Old WMS & Old Longfellow razed

13. per month for every $100,000 of home value
School Bonds 101
If Approved, How Much Will the Bond Levy Cost Me?
$11.64
per month for every $100,000 of home value

14. School Bonds 101 How Did You Determine $11.64 per month?
Home Value $100,000
Assessed Value $35,000 ( A x 35% )
Tax per Mill $35.00 ( B / 1,000 )
(continued on next slide)

15. School Bonds 101 How Did You Determine $11.64? Proposed Millage 3.99
Cost per Year $ ( C x D )
Cost per Month $11.64 ( E ÷ 12 )

16. Median Home Values US Census Bureau http://quickfacts.census.gov/
School Bonds 101
Median Home Values
US Census Bureau

17. School Bonds 101
Median Home Values

18. Bill Parkinson, Treasurer
School Bonds 101
Questions?
Bill Parkinson, Treasurer
phone
web