Props Q & A
Q: What does the community get if Prop G is approved?
A: Proposition G is a no-tax-rate-increase bond issue for $11 million in bonds for the purpose of constructing, improving, repairing, renovating, furnishing and equipping new and existing school facilities, including constructing a performance gymnasium at the High School.
Q: What is a bond issue?
A: A bond issue is a traditional way for schools to borrow money to pay for capital projects that are too costly for a typical budget. In Missouri, this requires voter approval even if the bond issue will not raise the tax rate.
Q: How does a bond issue work?
A: When voters approve a bond issue, the school district sells bonds to a purchaser who offers the lowest interest rate. These funds are used to complete the project and the debt is paid back over time. It is similar to a home loan.
Q: How can there be no-tax-rate-increase when a bond issue passes?
A: Each year the district pays off old debt from past bond issues. As the loan balance decreases, the district can borrow more and pay back from existing revenue sources such as growth in assessed valuation and low-interest rates. To generate additional revenue, the existing tax rate is extended, but not increased.
Q: Can the money generated by passing a no-tax-rate-increase bond issue be used for things other than capital expenses?
A: NO, it cannot be used for salaries, supplies, utilities, etc.
Q: What is a performance gymnasium?
A: A performance gymnasium is a multi-functional facility designed for athletic events, school assemblies, performances, and other community events. It provides a larger space for student activities and public gatherings.
Q: Isn’t there already a gym at the new high school?
A: Yes, there is an auxiliary gym at the new high school, which also serves as a FEMA storm shelter for student safety during severe weather. However, this space is primarily designed for practices and safety purposes, not for large events or competitions.
Q: What is going to be done with the original performance gym?
A: At this time, specific plans for the original performance gym have not been finalized. The District is evaluating the best use of the space to meet the needs of students and the community.
Q: Where can I find more detailed financial information about the bond?
A: : Detailed financial information and projections provided by Piper Sandler are available on the District’s website under Board Documents.