Karen asked me this question this morning. I gave her a long tortured theoretical explanation. She scratched her head then asked me again. You know, the simplest questions are some of the best. I’d like the newspaper to ask Dr. Dixon or Bill Hanson for an explanation.
“Sorry to ask again. But since I am confused, no doubt my question is not stated well.
Why is the district selling bonds for the entire amount of plan if there will be savings and the plan will only amount to about $125mil, not $250?
And, if the district does see the projected $5.3 mil/yr savings (eventually)where does that amount go? If they pay off the bonds we should see a reduction in our property taxes.
I know I am missing something. (I do not believe there will be a savings, but I want to call them on this.)
Here’s my inadequate reply:
“We all are missing something. I guess the answer to the first part of the question is “insurance.” Surely if the plan was only going to cost a guaranteed $125 million that’s all they would need to bond for. If they have doubts about the savings then it requires a cushion. In this case a very big cushion.
As to your second question. Search me. But Rxxxxxx and Kxxxxx have been making calculations showing that JCI stands to earn over $55 million. That would account for almost half the extra.”