Step 5: Evaluate Funding Options

step 5

In almost all cases, a general obligation bond is the only way most public school districts can finance major construction projects. Local property taxes are not and never will be adequate to fund new building projects. Annual funding is usually sufficient to finance regular routine maintenance, but not major renovations or new construction. 

In some instances, local philanthropy is available for construction, usually for special buildings and projects. The Facilities Master Plan identifies several items beyond the first initial high-impact, high-priority projects to be funded by the bond measure that could be funded by private donations.

The PVSD Board of Trustees received multiple briefings regarding bond options from Keygent Advisors, which has been a long time local consultant to PVSD when it needs expert advice on structuring potential general obligation bond offerings or parcel tax measures. The PVSD Board of Trustees has excluded the use of capital appreciation bonds (CABs), which are more expensive to taxpayers. (Read more about CABs here).

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10 steps