Propositions 1 and 3 School Bonds: Questions to Consider

FNSB Proposition 1 - $9,900,000 General Obligation Bonds for Ryan Middle School Capital Improvements (Ordinance No. 2011-39)

FNSB Proposition 3 - $10,390,000 General Obligation Bonds for Capital Improvements to Salcha & Woodriver Elementary Schools, North Pole Middle School & North Pole High School (Ordinance No. 2011-39)

Fact Sheet link: http://www.k12northstar.org/sites/default/files/2011_school_bond_fact_sheet.pdf

Both bonds are grouped together in the ordinance and fact sheet.

Passage of bond will result in:

Proposition 1
Ryan Middle School: renovation and system upgrades particularly to gymnasium wing (to include a weight room & dance floor according to Ryan Smith – I have not verified), preliminary design of future phased renovation and upgrade alternatives.

Proposition 2
Salcha Elementary: Replace and upgrade roof and building envelope.

Woodriver Elementary: Upgrade gymnasium interior, finishes, and mechanical, electrical and other systems.

North Pole Middle: Replace and upgrade roof and clearstories.

North Pole High: Renovations and mechanical, electrical, and other systems upgrades to the vocational wing.

If you’re not sure what a bond actually is read this article first: http://interioralaskavoterguides.blogspot.com/2011/09/repost-bonding-101.html

The estimated additional property tax amount due per $100,000 assessed value of property per year is $5.69. This is based on if the State reimburses 70%. If it doesn’t then the additional tax increase could be $18.96 per $100,000/yr.

I have not had time to research out the answers to the following questions but I believe they have merit to consider in deciding how to vote, especially considering our world economic variations.

• If my home is valued at $150,000 will my property tax be pro-rated accordingly?


• When is the state expected to reimburse the 70%? What if the state can’t or won’t reimburse the 70%?


• What if the number of property owners changes significantly? Is the “approximate amount” taxed redistributed every year?


• How many years will we be paying for this? When is the bond “due”?


• Who buys these bonds? What if no one wants to /buy them?


• How many school bonds are we paying on already?


• If I vote no can I opt out of the property tax increase and the accompanying “mortgage” responsibility? (I did find the answer to this: NO)


• According to the ordinance (2011-39) Section 2 it states: “…the Borough will levy ad valorem taxes* upon all taxable property in the Borough without limitation as to rate or amount to pay when due”. I am very uncomfortable with the idea that the borough can levy a tax on me “without limitation as to rate or amount” if need be. Essentially, a yes vote on this is putting up “our” property as collateral.


• Is the return for my risk acceptable?

Ultimately the bond litmus test question is:
Do I have a right to force a mortgage on my neighbor?

*Ad valorem tax: tax based on the assessed value of property.