E-SPLOST is not a new or additional tax. Since 1997, voters have consistently supported the local school system through resolutions, approving four E-SPLOST programs (1997, 2001, 2006, and 2011). Over the past 17 years these programs have paid debt, purchased land, built and equipped hundreds of classrooms, and helped maintain and renovate existing facilities.

In addition to maintaining existing schools, these programs have helped construct 20 new schools and 16 school additions.

E-SPLOST V Highlights:

• Projected collections are $87.6 million* from April 2016 to March 2021.
• Projections are 28% more than the previous program.
• This is a continuation of the existing sales or consumption tax. Meaning, the one-cent sales tax currently is paid on retail sales in Paulding County.
• Collections will begin in April 2016, when E-SPLOST IV expires.
• The referendum will permit up to $100 million in collections, to allow for flexibility in the projections.

* Georgia State University’s Andrew Young School of Policy Studies (Fiscal Research Center) and EducationPlanners, LLC

Priority 1: Debt Service

• 50% or $43.4 million of projected collections will be designated for debt service (principal and interest on existing debt).
• A minimum balance is always maintained to ensure adequate reserves are always available.
• As with previous programs, E-SPLOST V will provide for short-term borrowing, allowing for some projects to be expedited, if necessary.
• The school district has not issued bonds since 2008 and has $110 million in debt, $99 million by the end of the current E-SPLOST IV.

Major Projects in E-SPLOST V

East Paulding Middle Renovation - Completed

Herschel Jones Middle Renovation - Completed

East Paulding High Renovation - Completed

Shelton Elementary Addition and Renovation - Completed

North Paulding High Addition - Completed

Track and field Improvements - In Progress

Band Equipment - Completed

Technology Improvements - In Progress

Allgood Elementary Carpet - Completed

Panter Elementary Renovation - Completed

Nebo Elementary Renovation - Completed

Burnt Hickory Elementary Carpet - Completed

New Georgia Elementary Carpet - Completed

Hiram High Renovations - Incomplete

Roberts Elementary Renovation - Incomplete

Moses Middle Renovation - Incomplete

Maintenance Projects - In Progress

Miscellaneous Projects - In Progress

Russom Elementary Renovation - Incomplete

Moses Middle Addition - Completed

Russom Elementary Addition - Completed

Poole Elementary Renovation - Incomplete

Austin Middle Renovation - Incomplete

Baggett Elementary Renovation - Incomplete

Dugan Elementary Renovation - Incomplete

Provided that projected collections are met over the five-year life of the program, the citizens of Paulding County would continue to enjoy no school bond millage. Without E-SPLOST V, the $43.4 million in debt service would need funding through a school bond millage rate – resulting in an estimated 17% increase in Ad Valorem Tax (property tax). Here are estimated increases, based on home values:

• $100,000 – Increase of $129 per year or $645 over 5 years
• $200,000 – Increase of $257 per year or $1,285 over 5 years
• $300,000 – Increase of $386 per year or $1,930 over 5 years

However, this estimated 17% school bond millage rate increase (from 0.000 to 3.213) will not be necessary with E-SPLOST V funding.

Priority 2: Capital Projects

• 50% or $44.2 million of projected collections will be designated for capital improvements.
• Capital projects are subject to change based on the needs of the school district and fluctuations in the projections – considering that debt service is the first priority of the program.
• The school district, in collaboration with EducationPlanners, LLC, has identified capital needs that could be funded via the program, and ranked their order of focus.

State Funding of Capital Projects

• $18.9 million, or 30%, of the $63.2 million in capital needs are projected to be reimbursed through the Georgia Department of Education’s Capital Outlay Program.

Accountability

Paulding County citizens have consistently partnered with the school district to support critical funding initiatives, such as E-SPLOST. The school district recognizes that the cornerstone of this partnership is excellence in financial stewardship.

External auditors have annually reviewed all previous and current programs. All seventeen independent audits have found the school district in full compliance with the Georgia Constitution and Official Code of Georgia. The most recent Independent Account’s Report, by Serotta Maddocks Evans & Co., CPAs, is available upon request.