Schools

Oswego 308 School Board Chooses to Maintain Bond and Interest Levy

The 308 administration recommended a different option, which would have lowered the average homeowner's tax bill for 2013, but would have increased the debt service substantially.

The Oswego 308 Board of Education voted 5-1 Monday to maintain the current bond and interest levy rather than restructure the bonds.

Oswego 308 administration suggested option 4 for the bond-restructuring item, which would have lowered the bond and interest levy to $27 million for the next three years, but would have increased debt service by 4.46 percent ($27.9 million). It would also have stabilized the debt service and lowered the tax bill for homeowners in 2013 by an average of $359.

Currently the bond and interest levy debt service is at about $33 million.

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 “There’s a difference between manageable debt and debt that isn’t manageable.,” said Associate Superintendent Paul O’Malley.  “We’re looking to have manageable debt for the next 3 years so homeowners can take a deep breath.”

However the majority of the board members expressed that choosing option 4 would be “irresponsible” and instead recommended option 2, which asks to maintain the current bond and interest levy for the next three years and would increase debt services by only 0.91 percent ($5.7 million).

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Other options included lowering the bond and interest levy to $30 million for three years, which would increase the debt service by 2.83 percent ($17.6 million), lowering the bond and interest levy to $24 million for three years, which would increase the debt service by 6.24 percent ($39.0 million), or to do nothing to the bond and interest levy.

“This is taxpayer money. I think we need to be financially responsible with it,” said board member Brent Lightfoot.  “While I understand the allure of offering taxpayers a reduced tax rate in year one [with option 4], long term it costs us and the taxpayers more money to do that.”

Board member Danielle Paul said that her tax bill is almost $10,00 a year. “$359 doesn’t move me one way or another,” she said of the savings. “In year four the homeowners will have to pay back everything we’ve just saved.”

Board president Bill Walsh was in favor of option 4 and reducing taxes for the average homeowner’s 2013 tax bill. “How many emails do we receive saying people can’t afford their taxes anymore?”

The board voted 5-1 to approve option 2 to maintain the current bond and interest levy, with Walsh casting the dissenting vote and board member Greg O’Neil absent.


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