Carl Junction Schools Propose Proposition K.I.D.S.: A No-Tax-Increase Bond Issue for April Ballot

 

Carl Junction, MO – January 31, 2024 – The Carl Junction Board of Education announces its proposal for Proposition K.I.D.S. (Keep Improving District Schools), a no-tax-increase bond issue slated for the April 2 ballot. This $18.5 million initiative prioritizes safety and security enhancements while addressing critical upgrades across various district facilities.

 

Safety remains paramount in the district's vision for the future. Proposition K.I.D.S. allocates funds for essential safety and security improvements to the Primary K-1, Primary 2-3, and Instructional Services Center, alongside enhancements to all school entrances. Furthermore, the proposal encompasses the construction of a new classroom facility and improvements to the School Farm. Notably, it includes a dedicated facility for the Air Force Junior ROTC and Archery programs and the repositioning and installation of turf for the baseball, softball, and football/soccer practice fields.

 

"This initiative underscores our commitment to ensuring the safety and well-being of our students," stated Board President Larry Cowger. "By addressing identified areas for improvement, particularly in building entrances, through Proposition K.I.D.S., we're taking proactive steps to create a secure learning environment."

 

Beyond safety enhancements, Proposition K.I.D.S. extends its scope to encompass upgrades to existing facilities. Renovation of the Intermediate Building kitchen, subdividing the old Primary 2-3 cafeteria into four classrooms, resolving water drainage issues at the Bus Barn, transitioning to energy-efficient LED lighting district-wide, and ongoing maintenance of HVAC systems and roofs are among the planned improvements.

 

Importantly, passage of the $18.5 million bond issue will not result in increased taxes for residents. The district intends to fund these improvements by selling general obligation bonds, with the current bond debt extended for up to ten years to secure the necessary funds.

 

Superintendent Phillip Cook emphasized the collaborative effort behind the proposal: "Since August, stakeholders, including board members, administrators, and program leaders, have diligently collaborated with architects from Corner Greer & Associates and financial advisors from LJ Hart and Associates. This collective effort has resulted in a comprehensive plan prioritizing student safety and supporting student-driven programs such as VoAg., archery, and JROTC."

Pending voter approval on April 2, construction is slated to begin during the summer, with completion scheduled for the start of the 2025 school year.

 

For further information or inquiries, please contact Dr. Phillip Cook at pcook@cjr1.org.

Proposition K.I.D.S

Shall the Board of Education of the Carl Junction R-I School District, Missouri, without an estimated increase in the current debt service property tax levy, borrow money in the amount of Eighteen Million Five Hundred Thousand Dollars ($18,500,000) for the purpose of providing funds to implement safety and security upgrades to the Primary K-1, Primary 2-3, and Instructional Services Center and building entrances; to make improvements to the School Farm; to construct, equip, and furnish a new archery/JROTC facility; to replace heating, ventilation, and air conditioning (HVAC), complete roof maintenance, and install LED lighting District-Wide; to renovate the kitchen at the Intermediate School; to complete bus barn drainage improvements; to construct new restrooms, concessions, lockers, and an indoor hitting facility, reposition fields, install turf, and improve parking at the sports fields; to the extent funds are available, complete other repairs and improvements to the existing facilities of the District; and issue general obligation bonds for the payment thereof?

 If this proposition is approved, the adjusted debt service levy of the School District is estimated to remain unchanged at $1.0208 per one hundred dollars of assessed valuation of real and personal property.

FREQUENTLY ASKED QUESTIONS

On Tuesday, April 2, 2024, Carl Junction R-1 School District voters will be asked to consider an $18.5 million No-Levy-Increase Bond Issue.  The proposal will call for safety upgrades to all building entrances, facility renovations at the Primary 2-3 and Intermediate buildings, upgrading LED lighting district-wide, and addressing needed building maintenance issues, including HVAC, roof repairs, window improvements, and water drainage issues.

If passed, the following building projects have been identified for completion:

• A new JROTC and Archery facility
• Classrooms and a storm shelter at the school farm
• Reposition and turf multipurpose, softball, and baseball fields
• New restrooms, concessions, locker rooms, and an indoor facility for softball and baseball fields
• Additional parking around the new facilities

 

The Frequently Asked Questions document, provided below, is intended to serve as a resource to our District stakeholders in an effort to inform and educate prior to the April 2, 2024 election.

If you have any additional questions regarding the No-Levy-Increase Bond Issue, please contact Dr. Phillip Cook at pcook@cjr1.org or 417-649-7026.

Q:  When is the election?
A:  Tuesday, April 2, 2024

Q:  What is the actual language that will be on the ballot?
A:  Shall the Board of Education of the Carl Junction R-I School District, Missouri, without an estimated increase in the current debt service property tax levy, borrow money in the amount of Eighteen Million Five Hundred Thousand Dollars ($18,500,000) for the purpose of providing funds to implement safety and security upgrades to the Primary K-1, Primary 2-3, and Instructional Services Center and building entrances; to make improvements to the School Farm; to construct, equip, and furnish a new archery/JROTC facility; to replace heating, ventilation, and air conditioning (HVAC), complete roof maintenance, and install LED lighting District-Wide; to renovate the kitchen at the Intermediate School; to complete bus barn drainage improvements; to construct new restrooms, concessions, lockers, and an indoor hitting facility, reposition fields, install turf, and improve parking at the sports fields; to the extent funds are available, complete other repairs and improvements to the existing facilities of the District; and issue general obligation bonds for the payment thereof?

 If this proposition is approved, the school district's adjusted debt service levy is estimated to remain unchanged at $1.0208 per one hundred dollars of assessed valuation of real and personal property.

 

Q:  What is a bond issue?
A:  A bond is an authorization for a school district to go into debt and to establish a tax rate to pay off the debt over time.  The bond pays for capital projects, such as facilities and equipment, and may not be used for regular operational costs like salaries or supplies.

Q: What is required to pass the bond issue?
A: A 4/7 majority, or 57.1% plus one vote, is needed to pass a bond issue.

Q:  What will the cost be for individual taxpayers if the issue is passed?
A: This bond issue requires no tax increase. However, your property’s assessed valuation and taxes from other local jurisdictions could affect your personal tax bill.

Q:  How is it possible to issue bonds without a tax increase?
A:  Thanks to the district’s good financial management, Carl Junction School District is now in a position to ask for a bond without raising taxes.  This is a result of aggressively refinancing for better rates.  Local commercial and residential growth has also helped by expanding the local tax base.  Due to these factors, Carl Junction Schools now has the bonding capacity to take on additional debt with no tax increase.  We will continue carefully monitoring our debt and interest rates to save taxpayer dollars.

Q:  How does the quality of the schools affect property values and the local economy?
A:  Realtors agree that a good school system attracts buyers to an area.  Many home buyers ask about the school district before making a decision.  Because the Carl Junction School District is highly rated and has a good reputation, property values are higher here.  In addition, companies that are considering locations for new businesses insist on a good educational system for their children and their employees’ children.

Q: Could you clarify the "no-levy increase or no-tax-increase" language in the ballot language and the impact on property taxes should the bond be approved and the impact on property taxes should the bond fail?

A:  If the bond passes, the district will be able to complete the listed projects valued at $20.5 million without increasing the district property tax levy.  Should the bond fail, these projects will not be completed, and the district levy will not be affected.  Regardless of this bond issue, if, by some rare and unanticipated occurrence, the County significantly decreases the assessed valuation of properties within the school district, the district might be required to increase its debt service property tax levy to ensure that all financial obligations are satisfied in accordance with State law.

Q:  What else will be on the ballot on Tuesday, April 2, 2024?
A: In addition to the Carl Junction School District no-levy-increase bond issue, you will choose two Board of Education members out of three candidates. Depending on your location, you will also have additional county and city issues.

Q:  When must I be registered to vote in order to vote in the April 2 election?
A:  Voters must be registered to vote by Wednesday, March 6, 2024, in order to vote on April 2.

1. What is the financing proposal of the Carl Junction R-I School District?

 

            The Board of Education is seeking voter approval at the April 2, 2024 election for a $18,500,000 general obligation bond issue that extends but does not increase the current $1.0208 debt service tax levy of the District.  Ballot: Shall the Board of Education of the Carl Junction R-I School District, Missouri, without an estimated increase in the current debt service property tax levy, borrow money in the amount of Eighteen Million Five Hundred Thousand Dollars ($18,500,000) for the purpose of providing funds to implement safety and security upgrades to the Primary K-1, Primary 2-3, and Instructional Services Center and building entrances; to make improvements to the School Farm; to construct, equip, and furnish a new archery/JROTC facility; to replace heating, ventilation, and air conditioning (HVAC), complete roof maintenance, and install LED lighting District-Wide; to renovate the kitchen at the Intermediate School; to complete bus barn drainage improvements; to construct new restrooms, concessions, lockers, and an indoor hitting facility, reposition fields, install turf, and improve parking at the sports fields; to the extent funds are available, complete other repairs and improvements to the existing facilities of the District; and issue general obligation bonds for the payment thereof?

 

If this proposition is approved, the adjusted debt service levy of the School District is estimated to remain unchanged at $1.0208 per one hundred dollars of assessed valuation of real and personal property.

 

 

2. Explain what a general obligation bond is and how it relates to the financing for this project?

 

Under Missouri law the only way a School District can legally borrow money for school facilities’ improvements or construction on a full faith and credit basis is to seek voter approval of a general obligation bond issue.  A “general obligation” means that the School District can and must levy sufficient taxes to repay the principal and interest associated with the bonds.  With voter approval of at least a four-sevenths majority at the April 2, 2024 election the District can then sell the $18,500,000 of bonds in increments of $5,000.  This financing process gains access to numerous investors at favorable terms compared to what would happen if the District was dependent upon a single lender to supply the funding. The interest earned by the investors is exempt from federal and state of Missouri income taxes.  With the interest being tax-exempt, the actual rate the District has to pay is much lower than would otherwise be the case for a typical loan. 

 

3. How can the $18,500,000 general obligation bond issue be referred to as a no-tax increase program?

 

The current $1.0208 debt service fund levy is adequate to repay the existing bonds plus the $18,500,000 of new bonds by extending the levy to 2044, but not increasing it above the current level.  This is feasible due to growth in assessed valuation, interest savings from previous bond re-financings and prepayments of principal, and favorable interest rates in the current municipal bond market.

 

 

4. Can the District pay the bonds off early to save interest expense?

 

            Yes, the bonds will contain optional redemption (call) features that enable the District to repay them at no penalty in the event fund balances become large enough for that to occur.  The call feature also provides the District the opportunity to refund the bonds to take advantage of lower interest rates in the future, if the overall economic conditions create that set of circumstances. Refunding’s and prepayments that were previously done by the district has saved in future interest expense in excess of

$ 8,000,000.

 

5. Will local investors have an opportunity to purchase the Bonds?

 

Yes, the bonds will be available to local investors prior to being offered to others.  If you are interested in purchasing some of the bonds, let the District offices know and they will insure you are contacted after the election.

 

6. What type of rating will the general obligation bonds have?

 

The District can expect to receive an AA+ rating by Standard & Poor’s Corporation on the general obligation bonds.  Missouri school districts issuing general obligation bonds for construction purposes are eligible in most cases to participate in the State of Missouri Direct Deposit Program.  This program provides each issuer with an AA+ rating.