For the second year in a row, Fayetteville residents will be asked to approve a property tax increase to fund construction for the Fayetteville High School renovation project.
During a special meeting yesterday, the Fayetteville School Board voted 7-0 to approve the administration’s recommendation that the second phase of the project be financed by a 2.75-mill increase in order to come up with the $50 million needed to finish expanding FHS.
Last year, voters rejected a 4.9-mill increase to pay for the entire expansion project, prompting the district to seek alternative funding for the first phase of consturction. Survey results showed an overwhelming resistance to the over $115 million cost of the project.
If approved on Sept. 21, the 2.75-mill property tax increase would equate to an extra $4.58 per month for a $100,000 home.
Expect to see lots of campaigning for this increase as it will help the district secure $31.5 million in soon-to-expire, zero-interest bonds that officials say will save $29 million in costs on the project.
The school project will need to be finished one or the other so why not vote yes and get it done now? The $29 million saved on interest payments could go a long way to pay for other needs the district will have over the years. This is a very different situation than the last election.
Who is lending the district money at “zero interest”? I would have to assume these are interest bearing bonds, but some or all of the interest is subsidized by another government agency. Not to say that’s not a good deal for the district, in fact I think they should get all that they can handle. Just want to point out that taxpayers somewhere are likely still paying this interest. No such thing as free money.
ArkInvestor, the zero interest bonds are coming from stimulus funding via the American Recovery and Reinvestment Act. If we don’t use it soon, we lose it – the funds will get re-allocated to another state.
But a very valid observation you make…
@ArkInvestor – The $31.5 million is in interest-free bonds issued under the American Recovery and Reinvestment Act. The other $19-ish million is in traditional, interest-bearing bonds.
My main problem with the millage is that it does not expire. I’d have no problem with a tax that will go away after the school is paid off.
It still seems like an awfully expensive project since neighboring districts have managed to “git er dun” (Sprangdell) for much less money.
The problem with these types of increases are they are non expiring. How do we continue to justify increases in budgets when most Americans live in an economy where raises and cost of living increases have flown away as distant memories. I think rather than us continuing to try to beautify a building we focus on what the schools are for – education. If a plan was in place to actually increase the knowledge of the kids rather than trying to compete with other districts, or one up them with aesthitic facilities, most people could justify a tax that will never expire. I graduated from a school with poor facilities but where emphasis was placed on education rather than the need to have the best facilities. It is asmoke and mirror arguement– if my facilities are top notch then it must mean my kids being taught the best. Don’t believe the hype. Let’s spend money where it counts, the kids education
[...] school district have until 4:30 p.m. today (Aug. 23) to register to vote in the Sept. 21 millage and school board [...]