Vote YES on Measure O
Build for Scotts Valley's Future

How many years will SVUSD residents be paying this tax? Bond payments will remain on the tax bill for a number of years, just like a home mortgage, but the amount will vary over time – just a little at first, then more, then less, and then gradually going down from there. Here’s why: If the measure passes, a modest amount of bonds will be issued early in 2025 to fund the construction planning process. This will cause a modest uptick in property taxes for the 2025-26 tax bills. Then, a more substantial amount of bonds will be sold to fund the first set of projects, recognizing the practical reality that the projects will need to be staggered over time and there’s no point paying interest on a loan too far ahead of when the money is needed. In 2027, the bonds used to build Scott Valley High School will be fully paid off so that amount will come OFF the tax bill, offsetting a good portion of the increase from Measure O! The rest of the bonds will then be issued over the next year or two, as those projects are ready to commence. The number of separate bond sales is a calculation between getting the money only when it is needed versus the fixed transaction costs for each separate sale. There’s also a strategy to find the best combination of interest rate and duration, to minimize the overall long term costs to taxpayers. For example, the second set of Scotts Valley Middle School bonds that were issued in 2017, the 15-year rate was especially attractive so that $20M will mature in 2032 (another drop in the tax bill!), seven years earlier than the $15M, 25 year bonds issued in 2015. Most school construction bonds have a duration of between 20 to 30 years. They can be refinanced if rates drop during that time frame. For example, the original SVHS bonds were refinanced twice. This is usually done without extending the duration of the bond.