New High School Funding
Background Information
Based on much analysis by community leaders, the board of education, and city government, it has been determined that a new high school is needed to sustain our quality of education and support future growth. The City and school board have been able to refinance bonds enabling a $22.5M net gain and also received $36M in Qualified School Construction Bonds (QSCB) for a total of $58.5 to build a new high school. The decision that must be made is what funding source should be chosen to repay the $36M interest free bond.
Governor Bob Riley's Comments on the Madison City Schools
Community Forums
The following forums have been scheduled in order to solicit feedback on the proposed funding sources to support our schools. Members of City Council as well as the Board of Education will be present to answer any questions you may have.
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Date
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Time
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Location
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Description
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| Monday, November 9 |
6:00 pm |
City Hall
Council Chambers |
City Council Meeting
First Reading / Discussion |
Friday,
November 13 |
7:00 am |
Ivey's Restaurant |
Mayor's Monthly Community Meeting |
| Saturday, November 14 |
9:00 am |
Bob Jones High School
Zompa Auditorium |
Presentation and Q&A |
| Thursday, November 19 |
6:30 pm |
Bob Jones High School
Zompa Auditorium |
Presentation and Q&A |
| Monday, November 23 |
6:00 pm |
City Hall
Council Chambers |
City Council Meeting
Second Reading / Possible Vote |
Qualified School Construction Bond Details
- The City of Madison was awarded $36,000,000 interest free, to be paid back over 16 years
- The debt payment is $2,250,000 per year
- The first payment is due mid 2010
- This interest free loan saves Madison $34,308,000 in additional interest payments were we to follow a traditional bond issuance at 5% over 30 years
Repayment Options
Sales Tax Increase
- Council has determined that a ½ cent sales tax will meet the payback requirement if collection began on January 1, 2010
- Sales Tax could be passed by a vote of City Council
- 1/2 cent increase would generate approximately $2,4000,000 in additional revenue
- Tax would be rescinded (sunset clause) when either of these events occurred
- Debt is retired after the 16 year term OR
- A property tax is passed and collection started
Property (Ad Valorem) Tax Increase
- Property tax must be proposed through State Legislature and placed on a ballot for public vote
- An aggressive timeline would be a June ballot but most likely would be on a November 2010 Ballot
- Exact millage increase is still to be determined. Currently, the estimation is 7 mills.
- If a property tax was passed by voters in late 2010, it would not begin until 2011 thus collection would not be until the end of 2011.
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