EDITOR’S NOTE: This is the final installment of a three-part series on the Neosho R-5 School District bond issue.
In the Neosho R-5 School District, there are four funds in which the school district provides funding for educational purposes.
• Fund 1 is considered the incidental fund and is used for supplies and operating expenses.
• Fund 2 is sometimes referred to as the teachers’ fund because it is used to pay the salaries of all certified staff.
• Fund 3 is the debt service fund and is used for facility construction and renovation.
• Fund 4 is used for purchasing large capital outlay items such as buses, trucks, roof repairs, asphalt, etc.
According to Dr. Richard Page, superintendent of schools, the Neosho school district operates at the state minimum of $2.75 per $100 of assessed valuation to provide funds for Fund 1, Fund 2 and Fund 4. In April of 2006, the school district established a debt service levy that set a tax rate in Fund 3. This was the first time since 1964 that a debt service levy amount was set aside for the construction of school facilities.
“The combined debt service levy and operating levy for the school district established a total tax levy of $3.11 per $100 of assessed valuation and provided for the construction of the George Washington Carver Elementary School and renovations that took place at the high school,” said Page. “The current tax rate of $3.11 is one of the lowest in the area and provides approximate $200 per student.”
Comparing the numbers
• Diamond (adjusted operating levy) $2.75; (debt service levy) 99 cents; (total levy) $3.74
• McDonald County (adjusted operating levy) $2.75; (debt service levy) 67 cents; (total levy)$3/42
• East Newton (adjusted operating levy) $2.75; (debt service levy) 44.9 cents; (total levy) $3.199
• Westview (adjusted operating levy) $2.75; (debt service levy) 0; (total levy) $2.75
• Seneca (adjusted operating levy) $2.75; (debt service levy) 0; (total levy) $2.75
Asked where the increase would put the additional tax, Page said the increase would go into the debt service fund, which generates the tax appropriate to pay the principal and interest payments during and after construction.
“As the assessed valuation of our school district increases, the debt service levy, over time, may be lowered so that only the amount needed to make the payment would be collected,” said Page. “Generally speaking, when the assessed valuation increases the amount of revenue is increased which creates a possibility to lower the rate depending on the increase in the amortization of the payments on the bonds. Another benefit of establishing the debt service levy is that it allows the school district to extend the debt and use the difference to do future facility improvements without increasing taxes. This is the intent of the school district. However, the current debt hasn’t been in place long enough to be able to do this at this time and would not benefit the community by waiting due to increases in construction cost.”
For patrons owning an $80,000 home, the additional real estate tax would be approximately $53.20 for every $20,000 in market value. Real estate tax would increase by an estimated $12 if the bond is approved, Page said.
If approved, the construction of the fifth and sixth grade center could not be completed until the fall of 2010 or spring of 2011.
“It would be expected that once the issue has passed that many of the district personnel would be given input into facility development,” said Page. “The process from beginning stages to final architectural plans and contractor bidding would fall between six months to one year. The construction of the school would take approximately a year to a year and a half. Knowing how long it takes to actually see the benefits of the bond passage is the reason we feel some sense of urgency in addressing these concerns. We know that the crowded campus and traffic situation at the middle school will only get worst if they are not addressed as soon as possible. As far as other areas of improvement, here are other concerns that we believe can be addressed by using the debt service levy and not asking for more tax. By passing phase II, the district will be in a position to ask patrons to make facility improvements with a no tax increase facility plan. It is important to know that whenever that time does occur that patrons in our community will be aware of those plans.”
Neosho, Mo. —
