The premium and interest associated with the referendum will be used to pay debt service on the referendum debt. The amount of premium and interest from the referendum will not be used to pay the costs of constructing the new elementary school.
By using the premium and interest from the referendum to pay debt service on the referendum debt instead of tax revenue from existing debt service millage, the existing debt service millage becomes available to be used to pay the debt service on the bonds issued for the new elementary school.
The School District’s commitment to keep millage at 64.2 remains in place. The financing of the elementary school will not result in a millage increase or any additional taxes.