The Gasconade County R-II School Board is proposing another one of their “no tax rate increase” bond issues.
The district is proposing adding another $16,500,000.00 ($16.5 million dollars) of debt to the existing debt of $6,170,000.00 ($6.17 million dollars) for a combined total of $22,670,000.00 (22.67 million dollars) in bonded indebtedness.
We have yet to see, that I know of, a line item cost for each of the proposed projects. We’ve seen a wish list of their proposals to upgrade the football field, and the middle and high school gymnasiums. Along with adding some class rooms for vocational and technical skills and an expansion of the fine arts programs. That’s going to cost $16.5 million dollars? Really?
Expanding education in the vocational and technical trades makes very good practical sense, that’s where the job market is growing the fastest. Our kids can make good paying careers in those areas. Earning a living in fine arts? I’ll leave that for others to decide.
The elephant in the room is the “performing arts center” that is now referred to as a combined auditorium and storm shelter. Their last tax bond attempt failed and they have attributed that failure to the ballot language calling it by that name. Make no mistake, if this passes that “storm shelter” will have theater style seating. Also in last year’s ballot language the construction and equipping of classrooms for technical opportunities was included only if sufficient funds were available.
Here is the actual ballot language from the April 2023 bond proposal:
“…and to the extent sufficient funds are available, constructing classrooms and purchasing equipment for career technical opportunities and early childhood education programs?”
So, what was an afterthought last year (technical and vocational expansion) is now at the forefront of the proposal this year and gone is any mention of a “performing arts center.”
Pulled from the sample ballot for the April 2024 proposal, the last line of the proposal now reads as follows: “…and to provide a multi-purpose space to serve as an auditorium and a storm shelter?”
How many voters will read the entire ballot language?
Now for some numbers:
The total bonded indebtedness of the district will rise to $22,670,000.00 ($22.67 million dollars).
Since the School Board refuses to tell us when they expect to pay off these bonds, if ever, we have to make our own assumptions. If you assume an interest rate of 5.27% which is the rate quoted by Superintendent Hardy in the Gasconade County Republican, and you amortize that $22.67 million over 20 years here’s what you’ll find.
In order to pay this off in 20 years, principal and interest amounts to $153,013.87 per month, times 12 months equals $1,836,166.44 per year. Oops! The district debt service levy only returned $1,240,778.00 in tax year 2022-2023. A shortfall in tax revenue of $595,388.44 in just the first year.
Back to the drawing board. Let’s try only the requested 16,500,000.00 for 20 years using the same assumption of 5.27% interest. Monthly principal and interest now becomes $111,368.72 times 12 months equals $1,336,424.64. Which leaves an annual shortfall of $95,646.64. This leaves the current debt of $6,170,000.00 still on the table and unaccounted for. The School Board has offered no repayment schedule nor explanation to the taxpayers of how they intend to pay off this bond debt.
When you consider that approximately every two years our real property is reassessed, usually higher due to normal inflation. So even while the levy rate remains constant, that .67 rate will apply to the higher property value and will increase taxes being collected from you. Your taxes in dollars paid will go up, there’s no disputing that. The School Board has a convenient scapegoat to blame for your higher taxes, blame the assessor.
This tax proposal is a bridge too far for this local school district. These numbers are huge and apparently no one on the school board knows how to use an amortization calculator. Contact them and make them explain to you why we need to take on this exorbitant amount of debt, and how they intend to pay for it. The dirty little secret is they don’t ever intend to pay off these bonds. Hold them accountable, they answer to us.
Education should be the main focus. Teach them well. New buildings and fancy arenas can’t compare to excellent teachers. Please vote no on April 2nd.
Ed Adams
Gerald, MO
