Lee Hemberger, LeSauk Township
Do the math. Count your total cost before voting on the Sartell-St. Stephen School District Bond on May 24.
Own the average $180,000 home? You can help pay for the $105.8 million bond with low, easy payments of $22.30 a month or $267.45 a year. For your first year. Consider there would be 300 monthly payments over 25 years, with your property values and taxes likely increasing every year.
According to the Stearns County Auditor/Treasurer Office, home values in the area have doubled since 1998. Project a 2017 home value of $180,000 into the future at the same rate of increase and it will be worth $360,000 in 2035. If property tax rates remain steady, your property tax will double with your home. Plus the school-bond tax, which increases in increments according to your property value.
According to the aforementioned rate of increase, in 2020, your home value will be worth about $200,000 with a school-bond tax of about $304. In 2026, about $250,000 with a school-bond tax of about $396. In 2030, about $300,000 with a school-bond tax of about $487. In 2038, about $400,000 with a school-bond tax of about $671. The bond tax continues through 2041.
If, rather than paying school-bond tax, you were to invest the yearly equivalent in, for example, a Roth IRA (tax-free withdrawal) at an average compound interest rate of 7.2 percent, in 25 years, you would have around $27,000. A current year’s pay for many, which won’t be doubling anytime soon. But your bills will. Stop and think how quickly your basics have doubled, then compare that with your income. (Search engine “Rule of 72” to determine how long it will take your investments to double given compound interest rates of 6 to 10 percent. It’s a quick, easy estimate.)
There are, of course, many variables. Home values can skyrocket or plummet. Population increase could offset the school-bond tax burden somewhat, but yours would still go up yearly. Homeschooling is on the rise. I haven’t figured in the $60 to $84 yearly operating levy, as this will definitely increase at who knows what rate. How can you predict future heating costs 25 years out? And investment return rates fluctuate. There will likely be yet another school-bond proposal at some point. My calculations are based on increases with regularity, an estimate as a guide.
Room for growth is needed, yes, but I strongly favor expansion at the current middle school and high school sites at what could be a substantially reduced cost. Inasmuch as we need to invest in education, we also need to invest in ourselves, in our own futures.
I would also think there would be as much objection to the proposed location of the high school as there has been to that of the community center; they are at polar opposites at the edges of town, both, interestingly, in areas of development. Where is the heart of Sartell? Le Sauk Township has become victim to Sartell sprawl. Please consolidate.
Do some research. Crunch some numbers. Decide where you want to invest – in the bond? In your retirement? Make an informed decision. Then vote. As for myself, I think the entire bond needs to be revisited with community input. After all, it’s our money.