Note: This post was updated to reflect a comment provided by a reader indicated I did not calculate interest correctly.
I like to check out citizen comments on the Park Record. There is always something to learn. Today I was looking at the heated conversations on the “No School Bond” group article from Saturday. Commenters kept saying things like “$55 million is a lot of money” to spend.
I just wanted to point out that we as a community are not just spending $66 million on this plan ($56 million bond plus $10 million that’s in the bank). There is also interest on the school bond that should be accounted for. The School Board has estimated the interest rate at 4% (although it could turn out less depending on when the bonds are issued).
Four percent doesn’t sound like much, but it does add up
Term: 20 years
Total borrowing costs are approximately $25.5 million.
So, the total money being put into this project by our community is:
$56 million (bond) + $10 million (in the bank) + $25.5 million (interest) =
That is the cost of this plan to the community.