The collection of the special tax that backs the core CFD #6 must stop no later than 25 years after the final bond is issued, or FY 2045/2046. The annual 2% increase is optional, but I checked the numbers since 2003 and the tax went up 2% every year. I assume PUSD won’t leave any money on the table and they will be collecting until 2045 with regular 2% increases.
It looks like they assumed the rate of inflation higher than 2% since the payoff amount increases every year. It is either $16K + 2%/year or your share of the debt, whichever is greater.
The bonds pay 5-6% and without thinking much about it I assumed the cost to me is close to that and after adjusting for tax deduction it did not seem that bad. After the recent deductibility discussion and this thread I feel paying off MR makes more sense than getting a rental or a fancy new car.
