Guest Posting: The Real Cost of Renovation
The Real Cost of Renovation
I'm sure you've heard the old saw which proclaims: "It isn't the fall that hurts, it's the sudden stop!".
I'd also bet that, over the past few weeks, you have become far too familiar with the number: $108.8 million - the amount to be raised by the Elmbrook School District for high school renovation should the April third referenda succeed. Does anyone really want to hear that figure any more? No?
Good. Then let's look at the real cost of renovation!
To raise money issuing bonds, you've got to pay bond holders interest on their money. You also need to pay the bond sellers. The school district estimates this to be about 5.5% or $80.3 million. Now that gives us a shiny new number of $189.1 million.
$108.8M - Project Cost
$80.3M - Cost of Borrowing
$189.1M - Total Cost to Taxpayers
There are significant additional costs which we'll just ignore for now.
To determine what this new number ($189.1 million) means to each of us, the only other number we need is the present value of all taxable property in the district. As provided by them, this is : $7,446,715,036 or almost $7.5 billion dollars.
And following a little simple math, we discover that the total per family payout for this renovation is:
Projected 20 Year Cost at Home Value
(25.39 per $1000)
Value of 20 Year
The bottom line on all of this is simple: Get out and vote NO on April 3rd, or wish you had!
Opinions and views expressed in guest postings do not necessarily reflect all of the opinions of Practically Speaking and Brookfield7. They are written by and are the opinion of the person listed at the bottom. Anonymous postings are submitted by persons who do not wish to have their name on the piece.
ONLY 16 MORE DAYS UNTIL MILLIONS OF DOLLARS TUESDAY!
LINKS: Betterbrookfield, Brookfieldnow, Practically Speaking, Votenoapril3.com