Mt. Lebanon District set to open bids on bond issue
The Mt. Lebanon School Board will open bids today for a $10 million bond issue that officials say will require a one-time, 0.25-mill property tax increase.
Bids from financial firms that would issue the bonds were solicited via the Internet.
The money will go into an account to pay for capital projects this year and in the future. The district has been considering renovations to the seven neighborhood elementary schools, which could cost $29 million, along with putting $10 million into technology for the schools.
The bond issue will mean a one-time property tax increase to help pay back the amount borrowed over 15 years. School directors at a workshop meeting last Monday said they favor a 'wraparound' payment schedule rather than one with flat payments.
'I want to minimize the impact on taxpayers now,' board President Ronald Hoffman said.
The district will see fairly low payments for the first 10 years. Large payments will be due during the past five years, at which time current debt-service payments on recent capital projects will have been made.
'You are leveling the impact on the community,' said Janice Klein, director of fiscal services.
A flat bond issue would cost the district less in interest over 15 years, but the highest payments would be incurred early. Bids for the bond issue are to be presented at a future board meeting for approval.