Letter to the Editor: As PGISD Voters consider the PGISD Bond election this May, many of you may have the misunderstanding that merely paying $10.63 per $100,000 valuation of your home each year will pay for the new elementary school.
This is simply not the case. The value of the real property located in the Pleasant Grove School District subject to taxation is approximately $850 million. However, $125 million of the property has a “frozen valuation” – these homes will not be subject to the tax rate increase because the homeowners are age 65 or over. Consequently, only $725 million dollars will currently be subject to the tax increase for the new school.
Using a “straight line method” (not factoring in fluctuations in the valuation of the tax base, changes to exemptions, etc.), if each homeowner pays $10.63 per year for each $100,000 valuation of his or her home (excluding the $15,000 homestead exemption), the PGISD School District will collect a paltry $1.9 million over the life of the bond.
So, how does the School Board propose to pay over $36 million of debt with just $1.9 million of payments? THEY DON’T! What the School Board and administrators are not talking about(1) is the fact that:
The School Board assumes the valuation of the property tax base will increase approximately 29% over the life of the bond(2);
Payments on the proposed bond for a period of SEVEN years beginning in 2026 will be made from reserves generated by prior years’ tax payments plus any interest that might be earned on those reserves; and
The School Board has, what we like to call, “back loaded” the payments on the proposed bond beginning in 2033.
In other words, although your current tax dollars (almost 25 cents of every dollar you pay to the district) are being used to pay off six different bonds which were previously approved by the voters (and subsequently refinanced), with the first bond being paid in full in 2018, and the remaining bonds paid in years 2026, 2027, 2028, 2030, and 2032(3), the residents of PGISD WILL NOT see any relief from their taxes until 2033.
Consequently, when ALL of the previous bonds are paid in full in 2032, PGISD residents would expect that their tax rate will be reduced to $.0125 (just over a penny) per $100 valuation. But “NO”, your expectations are misplaced – the district will continue to collect OVER 24 cents per $100 valuation for 8 MORE years until the proposed bond for the new school is paid in full. That amounts to $240 per year for each $100,000 valuation OR $480.00 per year for a homeowner with a home worth $200,000 excluding the homestead exemption.
If the proposed bond were paid like most of our mortgages, the residents of Pleasant Grove would actually be paying nearly $200 PER YEAR per $100,000 valuation of their home. Consider this before you vote.
PGISD Better Education SPAC urges the residents of PGISD to get out and vote, and vote “AGAINST” the proposed bond.
Although the information is on the PGISD Tax Rate Impact Analysis, attached below.
Many of you recently received a Notice form the Bowie Central Appraisal District notifying you that the value of your home had been increased 1% for tax purposes.