If the Penny Swap passes, is FWÏã¸ÛÁùºÏ²ÊÖ±²¥¿ª½± shifting the money from paying on bonds to day-to-day operations
No. Tax collections received would be moved from the Debt-Service Fund (I&S) to the General Fund (M&O). The increased M&O Tax Rate will generate more local and state revenue for the daily operations of the District. The bond principal and interest payments will not change as a result of the TRE. Because of increased taxable property values, the reduced Debt Service Tax Rate (I&S) will yield the funds required to pay the annual debt principal and interest payments.
It’s important to note:
If the Penny Swap passes, Ïã¸ÛÁùºÏ²ÊÖ±²¥¿ª½± should receive more than $23M in additional funding each year. If the Penny Swap does not pass, Ïã¸ÛÁùºÏ²ÊÖ±²¥¿ª½± will not receive additional local or state funding. The amount of principal and interest debt payment will not change if a TRE passes or fails.
