EDITOR:

Gladstone schools are pursuing a bond that claims no increase in taxes. What needs to be understood, but is not being said, is that the school has a bond that will be paid off in the very near future resulting in a reduction of taxes of 5.9 mils. If the new bond proposal passes it will create a new tax millage of approximately 5.75 mils for the next 30 years. This millage rate is an only estimate. The bond proposal is for general unlimited tax bonds which means that the millage will be as high as it has to be to pay off the bonds. This millage rate is driven by the cost of the bonds. The school based their calculations on a True Interest Rate (TIR) projection of 4.75%. The current yield on a 30 year U.S. Government bond is 5.1%. No one can see the future; the interest rate could come down but all indications are it will continue to rise in the near future driving the cost of bonds higher. The new millage will likely be higher than what is being presented; how much higher is anyone’s guess.

The big question voters need to answer is whether all the items being proposed are necessary to a good education and whether they want to sign up for a very vague tax bond proposal with an unknown millage rate.

I based this opinion on information I obtained through a Freedom of Information request to the school.

Very best regards,

Joe Thompson

Gladstone