R-1 directors consider plan seeking $5 million bond issue in April 2023

By Buck Collier, Special Correspondent
Posted 10/18/23

HERMANN — Gasconade County R-1 School District directors are considering a plan to ask voters to approve a no-tax-increase bond issue of $5 million for capital projects coupled with a transfer …

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R-1 directors consider plan seeking $5 million bond issue in April 2023

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HERMANN — Gasconade County R-1 School District directors are considering a plan to ask voters to approve a no-tax-increase bond issue of $5 million for capital projects coupled with a transfer of 30 cents from the district’s debt service fund to the operating fund to provide increased pay for teachers.

If the board agrees to move ahead, a vote likely would take place in the April 2 General Municipal Election, which would include a vote for school board directors. The bond issue and the fund transfer would be presented to voters as separate questions.

Directors Thursday night received an update on the district’s bonding capacity health from Brad Wegman of LJ Hart Company, a bond counsel that advises school districts on matters involving bonds.

While a levy transfer requires only a simple majority for passage, a bond issue would need 57.1 percent approval, according to state law.

And while there is no specific plan on the table for capital improvements, there have been discussions about a possible expansion of the Agriculture Department. There’s also the likely need for some new construction and equipment purchases if the district is able to move forward with the creation of a Career Center on campus.

Superintendent Geoff Neill has been talking with various agencies about possible involvement in establishing a Career Center that would prepare students for careers in the hospitality, culinary and vitaculture industries. Preliminary steps are being taken now toward that with the Ag Department preparing to offer initial courses for students interested in those fields.

R-1 officials began the discussion of a possible bond issue earlier this summer, noting the strong position the district is in regarding the retirement of bonds approved by voters in past years. The board at an earlier session approved the early payoff of one series of bonds, a move that will save taxpayers about $800,000 in interest payment.

“I think our record clearly shows we’ve been responsible in retiring our debt,” Neill told the directors at last week’s regular monthly session of the school board.

As for the transfer of 30 cents from the Debt Service Fund to the Operating Fund, Neill said that would allow the district to boost the teachers’ base salary to $38,000 a year. By having the extra money available for teacher pay through a fund transfer, the district would not have to be as reliant on continued additional state money to keep R-1’s salary competitive with other districts in the region

The board has Jan. 23 to decide if a bond issue and fund transfer are put to voters in the April 2 election.

In advance of a decision, Neill said he would like to organize a walk-through of district buildings for patrons to see what types of improvements could be made with money generated from a bond issue. More discussion could take place when the board meets next month, including the possible formation of a steering committee that could advocate for the passage of a bond issue.

While the district can put out information about how bond money would be used, it can’t advocate passage of a bond issue. Using tax dollars to seek approval of a tax increase or a bond issue is prohibited by state law. “Let’s see where we are at the November meeting,” Neill said, regarding any further action on the matter.