If approved, the referendum would authorize the district to issue up to $118 million in bonds to fund the proposed capital projects.
The $118 million represents the principal amount of bonds that would be authorized and does not include interest or other financing costs associated with the issuance and repayment of such bonds. As with any bond financing, interest would be paid over the life of the bond issue.
The actual interest and financing costs could not be determined until bonds were issued, because the amount of these costs would depend on factors such as market interest rates at the time of issuance, the timing and size of each bond sale, and the repayment structure.
If the referendum is approved, the district currently anticipates that the approximate term of the bonds would be 20 years, with bonds being issued in multiple series as project funding is needed, rather than borrowing the entire authorized amount of $118 million at one time.
Bond sales authorized by an approved referendum would be designed so the district’s current bond and interest tax rate would not increase, so that taxes residents already (or currently) pay at that rate will cover both the amount borrowed (principal) as well as the interest and financing costs of the bonds. In other words, the “no net tax increase” determination includes the principal amount, interest, and financing costs.