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Notes From the Superintendent

NOTES FROM THE SUPERINTENDENT

On November 5, 2013, the patrons of the Bottineau School District will be voting on referendum to build a new PK-5 school.  If this referendum passes, the district will be issuing general obligation bonds in the amount not to exceed $18,900,000.  The first question entering everyone’s mind is “How much will this raise my taxes?”  This can be a very difficult question to answer right now.  At this time, the figures will be estimation. There are some factors we currently do not know which will affect the cost.   These items are the number of mills required, the taxable valuation and the interest rate of the general obligation bonds.  I have applied for a loan through the state.  Right now, the district is estimated to be eligible for $10,000,000 at an estimated interest rate of 1.75%.  This would mean the district will be bonding $8,900,000.  The district has been working closely with a Public Financial Management Firm on estimating an interest rate and cost to the tax payers of the Bottineau School District.

The Approximate Tax Impact is based on $100,000 True and Full Value of Residential and Agricultural/Commercial Property.  The annual tax impact is based on a 2.63% estimated interest rate.  The numbers of mill required is estimated at 51.32 mills.  Taxes are based on taxable market value, not estimated market value.  The formulas used to calculate tax impact is as follows:

Residential:

True and Full Value  X  .5  X  9%  =  Taxable Value

Taxable Value  X  Mills  X  .001  =  Tax Impact per year

Example:

$100,000  X  .5  X  .09  =  $4,500

$4,500  X  51.32  X  .001  =  $230.94 per year or $19.25 per month

Agricultural/Commercial

True and Full Value  X  .5  X  10%  =  Taxable Value

Taxable Value  X  Mills  X  .001  =  Tax Impact per year

Example:

$100,000  X  .5  X  .10  =  $5,000

$5,000  X  51.32  X  .001  =  $256.60 per year or $21.39 per month

The True and Full Value is going to be different for everyone.  These formulas can help each of you determine the tax impact on your property.  Again, these are all estimations at this time.  This additional cost will be over the next 20 years.

I would like to remind everyone information from each of our Public Forums can be found on our school website.  The website is http://www.bottineau.k12.nd.us/

I encourage patrons to access this information from our website and feel free to contact me with any questions or comments.  Whether you are a yes or no vote, it is very important to come to the polls on November 5.