Gasconade County R-2 Board of Education members met Aug. 17 to set the district’s new 2026-27 tax rate, which dropped significantly from $3.85 to $3.2524 due to the failed renewal of the debt service levy. The operating levy was set at $3.18 and the new debt service levy is set at 7.49 cents for the coming school year.

“Basically, our taxpayers will pay a lower rate this year than they have in the previous 20 years,” said Superintendent Dr. Staci Johnson. “A lower rate of taxes to the school district this year. The following year they will pay even lower, unless we were to go back to the voters to request a tax increase either to debt service or to operating levy.”

The board was joined by 18 community members and district officials during the discussion. Johnson shared the process.

“You have to get all of the valuation documents from all the counties the district serves. We have four,” Johnson began. “Once you have all the information, you have to input it into the state auditor’s calculations. That says how much you can levy to pay back the bonds you have outstanding.”

Counties are supposed to have all the numbers ready by July 1, but Johnson said they are frequently late or need revising. They received a revision from Franklin County on Aug. 14, which reduced the original debt service levy calculation from 7.5 cents to 7.49 cents.

The district will have $2,319,057.17 left on its 2017 bond issue after the July and September payments. The Missouri State Auditor’s Office determined the district only needs a 7.49-cent debt service levy to repay the debt.

While the next payment is due in September, the district would have an early pre-payment  penalty if it paid early.

“We could pay the bond off after March 1,” Johnson said, adding that it wouldn’t have a penalty for paying early at that point. “The board would have to authorize that. They are looking at paying it off this year or next year.”

While Johnson noted the district’s unrestricted fund balance, which is like a savings account, currently sits at 47 percent or half of the annual operating cost, it will dwindle quickly if they deficit spend as they expect to over the next two school years.

Cuts to local, state and federal funding are expected in the coming school years.

“In the short term, the community needs to know we are very financially healthy, according to operating funds. But in the long term, it’s not sustainable to just exist on $3.18 for the operating fund,” Johnson said. “We have what we need to operate the district right now, in the short term. But in the long term, $3.18 is not going to be sustainable.”

The board discussed what an early payoff might look like. Johnson said she would look into the early payment penalty.

Once the bond is repaid, the remaining 7.49-cent debt service collection will also drop off, completely eliminating the district’s current voter-approved 67-cent debt service levy for capital improvements.

Any building improvements that require a bond moving forward will be a tax increase that must be approved by voters.