Evaluating Nampa's levy plan
On your side examines benefits of Nampa's 4.3 million dollar supplemental levy request. Video by IdahoOnYourSide.comvideo
The Nampa School District wants the taxpayers to pass a four point three million dollar supplemental levy.
And the district says the one year levy will be countered by a big cut in bond payments so the public won't end up paying a penny more than usual.
We're On Your Side to ask an investment advisor if the plan could work.
The Nampa School Board sees the supplemental levy as a key component to their recovery.
"We began the year with a deficit and then we're looking at, without any changes, ending the year with a larger deficit. So having added revenue would be useful in handling our crisis." says district representative, Allison Westfall.
And they say their debt restructuring would make it a wash for taxpayers, at least in 2014.
"Yeah, they would refinance the bonds and that would change how the bonds are paid back over time. So the first year less. Other payments would be higher." says Westfall.
After 2014, the districts bond payments would increase slightly for seven years.
Larger increases would kick in for the final four years.
We asked Nampa based investment advisor Bob Coleman to evaluate the plan.
"All they're doing is not paying off existing debt. Reporter: But it would give them more time. Coleman: Yes, buying more time. Reporter: And that's the key to the whole thing. Coleman: Yeah, that's a solution if they've corrected everything."
Coleman says lots of troubled companies have successfully delayed debt to help turn things around.
But he says they all had good business practices and the bookkeeping at the school district has been suspect.
"The issue is you've got to have an independent audit or analysis to be sure the problems are corrected. To me that's critical, otherwise you're just throwing good money after bad."
The district says the levy needs to be approved before they seek a restructuring of it's debt.