Moffat County School District hears tax impacts of bond
For the Craig Press
It’s been 15 years since Moffat County School District last worked on a bond issue.
The district is planning to seek a $40 million bond, which would be put to a vote by Moffat County residents in November.
Investment banker Dan O’Connell with RBC Capital Markets has worked with the district since the last bond issue, he told the board of education during its work session last Thursday, June 24.
He said one of the biggest focuses has been to figure out a way to structure the bond to recognize that the Craig Station coal-fired power plant will close in 2028, while the bond is still in effect.
The 10-year, $40 million bond measure being considered by the school board would increase residential property taxes by 11.9 mills to fund necessary infrastructure repairs, maintenance and capital projects at several different schools in the district.
The mill levy increase would cost homeowners $14.22 a month, $170 each year, on a home valued at $200,000, according to an April article from the Craig Press.
The bond measure being considered would fund numerous capital project concerns throughout the district, including infrastructure, security and surface upgrades.
However, O’Connell’s presentation included information about both a $35 million and $40 million 20-year amortized bond, where the debt is regularly paid down over its lifetime.
For the $35 million bond, the annual tax impact would be $46.29 for a home valued at $100,000, with the new tax bill totaling around $270. For the $40 million bond, the annual tax impact would be $52.88 for a home valued at $100,000.
“Keep in mind these are estimates, so be wary of that,” O’Connell said.
The board considered taking the bond issue to the voters last year during the general election, but ultimately decided not to.
Board of Education Vice President JoBeth Tupa was against asking voters last year, citing the need to ensure the safety and security of students and staff last fall during the coronavirus pandemic as a reason why the board should pursue a bond issue going into the new school year.
The deadline to certify a question for the ballot is Sept. 3, O’Connell told the board, but the members will have to decide if they want to participate in an election by their next board meeting on July 23.
Since this presentation was given during a work session, the board couldn’t take any further action on the bond issue.
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