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Ask Dot: How do we pay for bonds?
Contributed by: YourHub.com on 10/27/2006

Dear Dot,

I've been seeing things in the paper about school bonds. I am a little fuzzy on how these bonds are paid off. Do they raise our taxes to pay for the bonds? Or do they take money away from other parts of the budget to pay for them? If we vote bonds in, do we have to vote again on how to pay for them?

Leonard Avery (Sarge)
Northglenn

Dear Sarge,

Thanks for the question! Bond issues can be confusing. To clarify what's going on, Deb Haviland with Adams School District 50 provided some information. The school district is one of three Adams districts with bond issues this year.

Bonds are purchased by the school district and paid back completely by the school district over time. A bond election generates revenue for major construction and/or renovation of facilities and schools, compared to a mill levy, which is designed to increase revenue for operational needs of a school district, which could include educational support, programs or salaries.

The state provides only $271 per pupil annually for maintenance and renovation of older facilities, so asking taxpayers to approve a bond is the only way school districts can obtain funding for construction.

Both a mill levy and a bond can increase taxes for homeowners and businesses.

For the district 50 bond, the cost to homeowners is $6.98 monthly per $100,000 of a home's assessed value. The bond would be in effect for 20 years starting spring 2007.

To read more about District 50's bond, click here.

Bond issues in Adams County:

Adams Brighton 27J

• Amount: $89 million

To be used for: Build two elementary and two middle schools, plus selected projects at existing buildings.

Homeowner cost: About $51 per year for each $100,000 of assessed valuation.

Adams Commerce City 14

• Amount: $78 million

To be used for: Build a new high school and upgrade existing schools.

Homeowner cost: About $123 a year on a home assessed at $200,000.

Adams Westminster 50

• Amount: $98.6 million

To be used for: Build a high school and elementary school, plus renovations of existing structures

Homeowner cost: $84 per $100,000 of assessed valuation.


Source: RockyMountainNews.com




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Showing 1 of 1 comments
Submitted By: Leonard Avery
posted on 1/4/2007 @ 12:48:36 AM
(Not Rated)
In effect for 20 YEARS!! Well that is just great. I bet if a lot of people knew that, very few bond issues would pass. No wonder my yearly taxes go up so fast. I thought it was just because the value of my house went up. I doubt if I will vote for any more bond issues, let alone mil tax boosts. Sarge
Showing 1 of 1 comments
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