Why a Bond vs. Capital Override?
Recently, we received a question..."Why is TVUSD pursuing a bond instead of a capital override, when the override option doesn't carry interest and fees?"
The capital assessment performed this past Spring identified several million dollars in needs, most immediate include $1M in buses, $2M in technology, and $12M in construction projects.
A capital override* would bring in about $600,000 per year for five years, then reduce by a 1/3 in year six and 2/3 in year seven; funding which must be utilized in the year it is scheduled. This financing method doesn't give TVUSD the ability to take on high expense projects such as the ones identified as needing immediate attention.
Stretching construction projects over multiple years would impact project scope due to yearly increases in construction costs. The bond financing option allows TVUSD to schedule and complete many of those construction projects in one to two years, maximizing the amount of work that can be done.
If you have questions related to the budget override and bond ballot measures, please send them to email@example.com.
* For more information regarding the structure of an override, please visit this link.