Dearest reader,
Now that we have looked at what happens to St. Charles Community Schools' debt millage with and without the proposed bond, perhaps we should look at the actual debt itself.
Because eventually, every bond comes down to three things:
How much do we already owe?
How much more are we borrowing?
And how much will taxpayers ultimately repay?
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According to the district's financial adviser, St. Charles currently has two existing bond issues.
The remaining principal on those existing bonds is approximately:
$6,670,000
The remaining scheduled debt service, principal plus interest, is approximately:
$7,960,384
That is the debt already on the books.
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Now comes the proposed bond.
St. Charles is asking voters to authorize:
$10,475,000 in new borrowing. But it would not all be borrowed at once.
The current financing plan divides it into two proposed bond issues:
2027: $7,475,000
2030: $3,000,000
Total new principal:
$10,475,000
Estimated interest on those new bonds:
$6,840,214
Estimated principal + interest:
$17,315,214
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So let's put the ledger together.
CURRENT REMAINING DEBT
Principal:
$6.67 million
Remaining debt service:
$7.96 million
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PROPOSED NEW DEBT
Principal:
$10.475 million
Estimated interest:
$6.84 million
Estimated debt service:
$17.315 million
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COMBINED
If voters approve the proposal, St. Charles would be dealing with approximately:
$17.145 million in existing remaining principal + proposed new principal.
And based on the schedules provided, approximately:
$25.28 million in remaining existing debt service + estimated new debt service.
There is an important distinction here. That does not mean taxpayers suddenly receive a $25.28 million bill. The existing debt is already being repaid, and the proposed bonds would be issued and repaid over many years.
But it does show the size of the entire debt picture voters are being asked to consider.
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And there is another number worth noticing.
For every $1 of new principal St. Charles proposes to borrow, the current estimates work out to approximately $1.65 in principal and interest that ultimately has to be repaid.
$10.475 million borrowed.
Approximately $17.315 million repaid.
Again, these are estimates. The district's financial adviser specifically notes that actual interest rates will be determined when the bonds are sold, meaning the final cost can change.
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None of this tells voters whether the projects are necessary.
None of it tells voters how they should vote.
Those are decisions for the people of St. Charles.
But before taxpayers decide whether another $10.475 million belongs on the ledger, perhaps they deserve to see the entire ledger.
Principal.
Interest.
Existing debt.
New debt.
And the estimated cost of paying it all back.
With receipts and respect.
Lady B
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