A Tax Neutral Bond

How can North Shore's proposed bond be "tax neutral"? Basically, as older debt is paid off, we can replace it with new debt, and the district has older debt retiring now in a low interest rate environment. Here are several options for additional explanation:

1.  You can watch this description from a financial advisor at Capital Market Advisors from a previous bond forum. Click here and and scroll to the 2019 June 18 - Bond Video. If you like, skip ahead to the 1:11:30 mark. 
2. The district has posted bond information here including a link on 'tax neutral.'
3. Read Superintendent Dr. Giarrizzo's recent email posted here. If you do not receive North Shore CSD's emails but would like to, click here.

From: Peter Giarrizzo
Sent: Tuesday, October 29, 2019 12:27:13 PM (UTC-05:00) Eastern Time (US & Canada)
To: Jones, Sara
Subject: Tax Neutral- Say What?! Bond Question of the Week!!

Dear North Shore Parents, Community Members, and Faculty,

December 10, 2019 will be the day that we ask our taxpayers to vote upon the proposed bond referendum. From now until then, I will be publishing the answer to a weekly question of the week that is important for you to understand and one that we hear of frequently within the community.    

Q. What the heck does tax neutral really mean and how can it possibly be that the proposed North Shore Bond is tax neutral?

A. The primary assumption made in planning this bond has been to achieve a payment schedule that remains flat from year to year. The bond payments from the 1999 Bond Referendum retired in the 2018-2019 fiscal year. In addition, two more bonds will retire in 2022-2023 and then again in 2025-2026. Our Board directed us to keep the projected principal and interest payments from this proposed bond AT or LESS than the amounts that are being retired. By doing so, the projected new annual bond payments will be at or less than all three of the retiring bonds combined.

We now have a very unique funding opportunity that will allow us to address significant and substantial needs in infrastructure, safety and security, health and wellness, and our use of instructional space. Here is how the funding will work over the next five years. You will see that on balance, the impact to the taxpayers is essentially flat or neutral.

This proposed referendum is a major investment in our schools and facts are important. It is a process that has involved years of planning, research and much community input. The implementation will involve even more planning and a competitive bidding process to ensure that we get the most value for our spending. As always, if you have a questions, please contact me directly or join me at any number of upcoming events. This week, there is Coffee and Conversation at my office at 9:30 am.  If you would like to join me on a building tour this Saturday, November 2, 2019 at 10 am, please RSVP to Betty Ciampi at ciampb@northshoreschools.org by Thursday morning, at 9 am.  For more information on the bond, please visit http://www.northshoreschools.org/boe/bond.html

Please mark your calendars for Wednesday, November 13th at 7 pm at North Shore High School where our parent organizations will host a information night on the bond via a short presentation in the Theatre and small group break-out informational sessions in the Cafeteria.  I hope that you can join us!!

Stay tuned for more information and next week's Bond Question!

Very truly yours,

Peter Giarrizzo, Ed. D.

Superintendent of Schools