Community Forum 2025 April 8

2-STEP BOND APPROACH TWO BOND ISSUES - BOND PHASE 1 2022

TWO BOND ISSUES - BOND PHASE 2 2025

2022

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Economic Instability Construction Market Volatility Labor Shortages Supply Chain Issues Inflation Rates Construction Materials

PIPER HIGH SCHOOL SOUTH ATHLETIC BUILDING

PHS OUTDOOR FACILITIES Existing Soccer Field

•Competition-Ready Turfed Varsity Baseball Complex •Competition-Ready Turfed Varsity Softball Complex •South Athletic Building: Locker Rooms, Public Bathrooms, and Concession Stand for Varsity Baseball & Softball Complex

•All-sport, State of the Art, Practice Facility •Track with Grass Infield and Separate Field Events Facility •Practice Turfed Football Field •Practice Grass Soccer Field (Existing PCE Field)

FOOTBALL PRACTICE FIELD

OLD PIPER MIDDLE SCHOOL

#FUTUREREADY PHASE 2

Top 10 Reasons Athletic Complex is so much more than “just athletics” 10.

All-Weather Usage: No Rain Outs Due to Wet Facilities

9.

Maintenance Savings–No Mowing Grass

8.

Consistent & Safe Performing Surfaces

7.

Allows for Additional Time for Youth Facility Rentals at District Fields

6.

Equity in Practice Times (Both Sport Teams and between PHS and PMS)

5.

Post Secondary Scholarship Opportunities

4.

Brings Outdoor Graduation Home with Seating for All Families

3.

Community Venues for Community Convening & Piper Pride

2.

Equal Opportunities for All Students

1.

District’s Largest Classroom

PMS BASEMENT RENOVATION

ALL STUDENTS

ALL STUDENTS

ALL STUDENTS

ALL STUDENTS

Q: What is the proposed new bond terms? Another 30 years, with a 10 year interest only payment option? What will be annual interest payment on all outstanding bonds?

A: Proposed Bond Terms & Interest Payments ●

The new bond would have a 30-year term.

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In 2026, the District plans to pay interest only on the new bonds.

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Starting in 2027, the District will make both principal and interest payments annually for the remainder of the bond term.

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If the bond election passes, the annual interest payment on all outstanding bonds in 2026 is estimated to be between $6.49 million and $6.76 million, depending on the interest rate received on the new bonds.

Q: Approximately how much interest will be paid on this bond?

A: Approximately $42,445,70 of interest will be paid on this loan and $32,500,000 will go towards principal. The total amount paid over 30 years is approximately $74,945,750.

Q: Why is the interest amount higher than the principal?

A: It’s common for interest to exceed the principal in a 30year borrowing. For example, a $300,000 mortgage at a 6.75% interest rate over 30 years results in more than $400,000 in interest.

Q: Has the principal on the previous bonds been paid in full?

A:

Q: What factors influence the Board of Education's decision to adjust or lower the Bond and Interest Rate each year? Beyond easing the tax burden on patrons, are there other reasons—such as financial or investment strategies—behind these decisions?

A: Typically, the Bond and Interest Fund mill levy will increase in the fiscal year immediately following the passage of a bond election and will fall in subsequent years as the assessed valuation of the District grows. However, this pattern could change for to a variety reasons including adjustments to state aid rates, adjustments to cash basis reserve, assessed valuation growth lower than projected, and use of the B&I Fund to stabilize the total mill levy rate.

Q: What are the interest rate predictions for the upcoming bond?

Do we have projections?

A: A 5% interest rate was assumed on the future bond issue. Yes, detailed mill levy projections were prepared.

Q: How might this bond affect the Mill Levies in the future?

A: The new bond issue is projected to increase the Bond & Interest levy by 2.412 mills.

Q: Last sentence on the Ballot provision: "The balance of the costs shall be paid with interest earned on the reinvestment of the bond proceeds prior to expenditure or bond reoffering premium." Can you explain what this means?

A: When a school district issues bonds there are often additional monies

generated above the original principal amount of the bonds. One such addition source of funds is interest earnings from the investment of the bond proceeds during the construction of the project. The other source is premiums that might be generated from the sale of certain bonds at prices above their stated maturity amounts. Both of these other sources of funds can be used to pay project costs or to reduce the B&I Fund mill levy. The exact amount of these additional sources of funds can not be determined until the time that the bonds are sold and the projects constructed.