03/17/2025
Bond Resolution answers to questions I have heard -
1 - Funds from the bond sale cannot be used for general operations (salaries, repairs, electricity) The referendum, which is voted on by the people and is on this special election ballot, states and limits what capital outlay projects bond funds can be spent. It would be the law.
2 - PSD bond rating is quite good (AAA). Typical market rates would be expected for our bonds with this rating. Bonds are paid back with interest to the bond holders. Currently, the payback is scheduled to be over 20 years. Like most debt, it can be retired quicker than 20 years. Future ESPLOST projects can include payment in principal of this debt.
3 - There was a question about three schools investing $5.2 million per school in HVAC replacements. That figure originated from our architect whom we asked to draw and prepare estimates for replacement of the entire HVAC/Heating systems in the entire facility. This was to be a preemptive move on future repair costs at these facilities. I looked at one of the recent invoices (2+ years ago) for one rooftop replacement unit. The unit and its installation was right at $850,000. Considering schools have multiple of these units and the potential for other HVAC switch outs, the estimate seems more reasonable.
4 - We looked into accomplishing this proposed capital outlay (projects) through another ESPLOST. We learned from our bond counsel that if we utilized the ESPLOST method now, that due to the structure of the previous ESPLOST and its collection window, the interest costs would be estimated to be $6-7 million before we could even begin to legally begin paying back principal on the bonds in 2030. 2030 is when the ESPLOST money could begin to pay the bonds back under this method. Simply put, why pay an extra $7million in interest costs on same dollar amount borrowed through a splost when we could borrow on the traditional bond and payback through 1 mill of property tax and save 7 million?
Hope this helps answer a question you might have had.