Bond is more expensive than suggested | LETTER TO THE EDITOR
Published 11:59 am Friday, February 5, 2016
To the editor:
School board members fail math test. It is $63 a month, rather than $15.
This past week I listened to a discussion of the new $81 million bond issue before Bainbridge voters. It was most thought provoking.
While the superintendent of schools and the former president of the school board justified their position as expected, balancing their presentation was Dr. Lewis Mandell.
Professor Mandell, a dean of business schools at several prestigious universities, and author of over 20 books on finance, closely examined the claims of the proponents of the bond issue and came to somewhat different conclusions.
While the proponents of the bond issue claim that the issue will cost the average household only $15 a month, this can happen only if one ignores expiring school bond issues. The tax money from paying off those bonds which was scheduled to come back to voters never occurs. It is only replaced with additional higher taxes.
The $15 a month cost also was to occur with a projected tax assessment of houses having a value only about two thirds of the average value of a home on Bainbridge. The information assumes a county wide value assessment which includes many low value homes off the island.
When Professor Mandell evaluated the actual cost of this bond issue, $81 million repaid over 20 years at 5.88 percent, he found that the true cost to Bainbridge homeowners was an average of $758 a year or over $63 a month. His figures were unchallenged by the proponents.
The disingenuous presentation of the bond issue by the school board to the voters should be recognized. Does their desire for new buildings and a grand new 630-seat theater justify a presentation which is knowingly false? Are they presenting an image of honesty for the students in this community?
For those of us who believe the BPA does an extraordinary job. We believe this bond issue is an unwarranted grab for control of theater arts in the community. This issue should go be rejected as is, and school officials should go back to the drawing board with inclusion of the BPA and all other groups focused on theater arts and music to arrive at something which will benefit all of us on Bainbridge Island.
JAMES F. KADLEC
Bainbridge Island
