I was troubled by a letter to the editor from Mr. Clark Stevens that suggested Kent School District and local supporters were using disingenuous tactics with regard to the school construction bond measure.
Mr. Stevens has looked at the information and drawn inaccurate conclusions. I am making it very clear that the statement in our publications that current tax rates for debt service will be maintained, not raised, is absolutely accurate.
The essence of Mr. Stevens’ argument is that school bonds by nature create taxes for local constituencies. However, current bonds are expiring and the new bond sales are planned in such a way that they will essentially replace existing bonds as they sunset. As the district retires existing debt, this new debt (bonds) will replace it so the overall principal and interest payments remain fairly constant and the taxpayer sees no effective tax rate increase. This is explained in some detail on the website ksdbond.org
Bond sales are long term debt commitments, and there are stringent federal regulations on how they are structured and used. According to IRS rules, a school district must expend all of the funds within two years or face penalties, and it isn’t feasible to complete all of the projects in a two-year period of time.
Accordingly for this bonding authority, if approved, the district will not sell all of the bonds at once, but sell $60 million in bonds in 2016, another $60 million in 2017, and $65 million in 2020, and the balance, $67 million, in 2022. This helps lessen the burden on tax rates and the total tax bill. Again, as these bonds come into play, past bonds expire and tax rates stay the same.
We feel our approach is thoughtful and effective and also respectful of the taxpayers as we work together providing the most effective and efficient education possible for each and every one of our students.
– Ralph Fortunato, interim chief business officer, Kent School District
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